> This seems designed/intended to chase away immigrants.

No, it's designed to chase away non-immigrant student visa holders.

But it's part of a broader set of policies designed to make the US hostile to foreigners, whether current visa holders, non-immigrants visa applicants, or immigrant visa applicants.

Or, it could be designed to encourage universities to hold in person classes.

In particular, to pressure those universities that have business models relying on foreign student tuition.

Many universities are planning to have at least some of their classes be in-person this fall. My daughter was just admitted to Seattle U, and they expect her to be moving into her dorm in about a month. I am mostly expecting this to be cancelled, though.