Because lots of people with CS degrees don't have basic programming competence?
When schools allow students to do coding projects in groups, it's possible to graduate with ZERO ability, provided you can find someone competent to partner with.
I did lots of problem sets, homework, and coding projects in school. Why do I have to do it again FOR EACH JOB INTERVIEW? Especially since the projects are usually less on-topic than the ones I did in school.
I.e., I do a homework project for a class, and if I don't get an A, I usually get a reason why not. I do a coding interview project, it goes into a black hole and I never hear from them again.