As a new grad in this job market who got 2 offers (1 FAANG), I heavily disagree. My projects (specifically my
toy operating system) got me my offers.
Projects are just about the only thing you can add to your resume to show competence. Everyone has a degree, and no one has work experience.
Not only did my projects show that I have completed semi-relevant work in something considered relatively complex, which presumably got me past resume screenings (confirmed by my hiring manager), my projects also gave a prime talking point in interviews that let me showcase my domain knowledge and way that I work. (Consider cliche interview questions like “what is the biggest challenge you’ve faced”, and how they relate to your projects)
This is especially beneficial if you’re being interviewed by other engineers, and you can geek out over a project. Being human and enjoyable, while demonstrating technical competence, is a great interview winner.
Ofc I have limited experience, but small samples can add up if other evidence corroborates with it.