I'm not sure why we care about the degree. Employers care about the degree, but they aren't paying for my education.
The students who want to learn, will learn. For the students who just want the paper so they can apply for jobs, we ought to give them their diploma on the first day of class, so they can stop wasting everybody's time.
Employers want the degree because it's supposed to verify that you have a certain set of knowledge and/or skills, or at the very least, you're capable of thought to the extent required to get that degree. That's the only reason they want it.
Student being unable to unwilling to learn that knowledge or acquire those skills should mean they don't get that degree, they don't get those jobs, and they go work in fast food or a warehouse.
"Just give them the degree" is quite literally the worst possible solution to the problem.
The students who want to learn, will learn. For the students who just want the paper so they can apply for jobs, we ought to give them their diploma on the first day of class, so they can stop wasting everybody's time.