The system has a lot of problems for sure, but IME as a senior software engineer, people without degrees are often lacking in core CS skills and are much less comfortable with the more conceptual aspects of the field like graph theory, systems design, DSLs, etc. Usually database skills aren’t quite as strong either due to not having studied relational algebra and other database concepts.

None of this is to say that someone without a degree can’t be a valuable part of the team, but at the higher levels of seniority, you do want people who have really strong foundations so you can ensure that you actually are building strong foundations. Not saying someone without a degree can’t possibly achieve this on their own, but it’s quite rare and requires much more self study than most actually do.