Because the so-called entry level positions require an in-depth knowledge of abstract algorithms, proficiency in coding skills, and a working knowledge of source control. There are no jobs for someone who goes to an interview armed only with what they learned in school.

Companies are hiring people to do a job. It makes sense to ensure the people you hire can actually make something.

You should have learned all of that in school. If you have a 4 year CS degree and can't do those simple things, then you didn't actually pay enough attention in class and are, in fact, a bad candidate.

Engineering degree != CS or software engineering degree. No idea what the job market looks like for a civil engineer or for some sort of unspecified 'engineer' grad.