For sure! And that’s perhaps the #1 reason these teams are so valuable: it’s an environment to get hands dirty in. If something sticks, that’s great and goes on the resume. If something awful happens, just walk away with a cool story assuming you didn’t blow up a school building or anything like that. Either way the experience and hopefully learnings stick with these young people like me for a long time.
I've seen PhDs whove mastered the art of being in the same uni team. One of them I knew has followed the path from undergrad (4 years), masters (2 years), RA (2 years), Phd (7 years), Post-doc (2 years).
Another is a startup founder who started the team in undergrad, worked as an RA for 4 years, then spun-off his own company over the next 6 years.
For the most part its beneficial for the uni to retain such talent. Especially, cause they are better grounded than some of the professors who claim to be "experts".
But I'll ask them now, and get a real answer.
Their advantage is institutional buy in and resource allocation.
A collegiate team that has to piss a huge fraction of their man hours on overhead tasks and fundraising has no chance of success.
The flip-side of this that you have a bunch of very smart young people absolutely dripping with theory knowledge and close to zero relevant real world experience in anything applicable in this space. The ability of college university teams to make exceptionally bone headed f ups is very well known. I've mentored a couple of university rocket teams for over 5 years now and I can tell you it's often an exercise in 'unknown unknowns'.
USC RPL has been at this for almost 20 years now. Their main competitive advantage (besides in-house cf cased motors) is documentation and knowledge transfer. As I'm sure you can imagine there are probably no founding team members actively involved today. I was at Balls in 2013 (IIRC it was 13) when they launched their first Traveler rocket, which was their first space shot attempt. They didn't actually reach that goal until April 2019.