This is the reality. Having any work experience at all is huge. I thankfully/sometimes-by-accident worked 5 internships during my 4.5 years in my upper-middling college, and had no problem picking a place to work afterwards.

I had many friends who over-indexed on grades and had 0-2 internships. Many of them were really smart, but couldn't get the foot in the door for an interview.

Experience (including internships at legitimate companies) will get you past the the resume screen and recruiter call. From that point on, it's your interviewing skill that counts most.