"You can lead a horse to water but you can't make it drink."
It says barely anything about the universities and everything about the student. If a student just wants to just have a perfunctory gargle at the fountain of knowledge instead of drinking as deeply as they can, that's on them.
Almost everyone embellishes their resume. Some do it to an extreme. The first stage should be weeding these people out, and any hiring manager learns this lesson very quickly.
Story: I learned this as a hiring manager early on. I was the resume screener, first contact and then last contact. Everyone in between was my team and other adjacent teams. I failed to ask the right questions in a phone screen and when we brought this guy on-site he failed very bad. Even worse, he broke down begging for for another problem he could solve.
It was bad for everyone and we were a very accommodating group that gives many tries. We weren't looking for perfect answers to one question.