Definitely. Do you think, however, that educational systems should be working to fix this? Or that the industry relies (and is ok relying) on private training resources like bootcamps, and the self taught wonders of the world?
Yeah. I recently had a guy with a CS degree ring up my groceries at the supermarket. There are definitely people out there with CS degrees who cannot make it as software developers.
Our CTO was a project manager for 8 years. Picked up web development 2 years ago and now runs a major tech startup... anything is possible. He had a traditional engineering education, but CS has nothing to do with it. You might learn the fundamentals from a theoretical perspective, but a lot of our web dev students in Europe are CS grads looking for a way to access the tech industry.
Someone with a CS degree is not a developer.
A subset of companies think you need a CS degree to be a developer. Yours is one. That you work somewhere that is so vehemently anti-autodidactic programmers means you are incapable of objectively judging.
In my experience good developers don't have to have degrees and there are many bad developers with degrees.
Basically, degrees are a poor indicator of developer skill.
In reality, programming is a vocation, not an academic subject and many academics are very poorly suited for programming.