I think we're witnessing the collapse of the university value proposition. In the decades post WW2, the attendance/competition within universities was quite modest compared to today. Relatively fewer people went, and it was essentially a social class sorter, with a liberal education sprinkled throughout. This actually creates a better learning environment, as once you're "in", you can focus on the experience. Nowadays, the university is just another hamster wheel in the grind, in a never-ending arms race against the sea of other students/degrees/credentials. Failure to deliver results means you didn't consume enough, and must consume more. Eventually this dilutes the value of the degree, both from a signaling and a financial perspective. It seems like we're in the peak enshitification stage of higher ed.
For employers, requiring a degree doesn't cost them anything. So they're happy to keep piling on the requirements. I guess the question is what type of employers would actually be the first to decouple their recruiting/hiring from credentialism and rely on other metrics of competency?
[1]https://en.wikipedia.org/wiki/The_Unaccountability_Machine