It’s worth noting that universities cannot prepare you adequately for employment. The amount of programming you do throughout your 4 years is minuscule (perhaps a few hundred hours) compared to what you need in order to achieve any measure of competency (several thousand hours). There are CS students who graduate without knowing how to program!
This is not at all surprising. Compare learning how to program with learning how to play a musical instrument, or how to play chess, or how to speak a foreign language. Can you do any of these things fluently after only a few hundred hours? Why should computer programming be any different???
When (or if) employers hire these grads, they have to learn programming on the job anyway. (I speak from personal experience.) Even if you “know” Java or Python, that’s only a small part of the programming skills you must acquire through experience. So focussing on what languages you know is short-sighted and counterproductive.
But you are correct: the industry is in a sad state. Hiring managers don’t really understand what they’re hiring. Focussing on specific languages rather than on overall skills and experience does not serve the best interests of the companies.