> Another problem is that just because a person graduates with a degree in X, doesn’t mean they are any use at X

Perhaps true, but this:

> I know a bunch of CS degreed people who got out of virtually every coding course in university.

is arguably a different problem, because CS isn’t Software Engineering, though the right focus within CS study can be a good preparation for work in software engineering.

> They are technically part of the group of potential employees for technical work,

If they aren’t working as software engineers and aren’t seeking jobs as software engineers, are they really?

> If they aren’t working as software engineers and aren’t seeking jobs as software engineers, are they really?

Practically, no, but for the purposes of surveys and government reports, yes.

A CS degree was never intended to produce skilled coders. It's not a vocational training course.

ABET accreditation (not as important in CS as engineering, but still very common) requires a CS program to teach software development and strong programming skills.

Training for professional roles (like engineering) is essentially vocational training. There is an industry need that drives the curriculum requirements.

Someone should tell that to companies hiring programmers.

If one succeeds in a CS program, then "programming" should be straightforward. I have a CS degree. We never learned any computer languages in college; you were expected to 'pick up' them well-enough to succeed in the course. (These languages were APL, Maclisp, and PL/I). A CS degree can be a proxy for 'this person proved they can learn computer-related stuff'.