Employers who poorly select employees will most likely be out-competed by employers who make better decisions when selecting employees. We already see this in hiring for software engineers where many employers will accept a bachelors degree or other experience which demonstrates coding skill.
And for software engineering, at least when I went to school, you still had to be able to program at least a little bit to get a degree.
The majority of the downside from credentialism comes from fields where it’s literally illegal to work if you don’t have the right college degree
I’m not saying it isn’t a problem at all. I think I explicitly acknowledged that there is a problem where I said “the majority of the downside.” But it is a problem that the free market can resolve. The free market can’t resolve the doctor problem because the government literally requires the worthless undergrad degree to allow someone to practice medicine or else they’ll be jailed.