Why would you expect companies to take a risk on a new grad when they could instead hire someone who has already proven themselves at a different company? Especially during a pandemic where there's so much uncertainty. I'm not saying it's right but it makes sense.
How would a recent grad cope working fully remotely without any mentorship? I would much rather go with someone with more experience.
That being said, I have to admit that I was very impressed with the work done by the two interns that were on my team (at $BigTech) who are leaving next week. But they had their own projects and weren’t on critical paths.
We have no idea how they - or any fresh grads would do as full time employees. I think they would do okay. But they are treated with kid gloves compared to FTE’s.