Often times college students will outperform seasoned people because there is less inhibition to get things done. Older folks are constantly worried about Xy and z and therefore get fewer things accomplished. Is the work output excellent? - it might not matter - the IT industry never pays down the debt.

Their spin: the AI is so good you are all going to use it to replace graduate software Devs.

Alternate take: the AI is so bad at educational tasks that it can't train up even top flight graduates when instructed by the world experts in AI.

Probably just user error, but I've got eight years of software development experience and can't even get an interview after being let go nine months ago.

This is fine.

There will be always be new jobs for these graduates as AI will create new jobs.