Much more experienced developers of the second type just throw their hands up and give up (or now: turn to AI). I've worked closely with them to try and reform them. Maybe I'm doing it all wrong, but it has never succeeded.
With the ones from the first group it can work that way: you can show them how you approach problems and they will ask questions and pick up patterns and you'll see them improve.
> Even then, the businesses don't want to pay for that, and why should the workers give that away for free?
Businesses would need a high likelihood that they can reap the rewards of upskilling employees. Why invest a lot of money and high-talent attention into someone who might quit? At the same time, I'll happily pay three times as much for a truly skilled senior developer. I think the employee's incentives are much more aligned: it will increase their market value, it's an investment into their wealth, not the business'.