Lots of people hold the same view about people who've come straight out of university; they simply can't code at all. I think it's less common nowadays, but it was whined about a lot in a IRC channel I frequented that people who came from university usually had to be taught even the most basic things about actually doing.
I certainly thought this was the general consensus. People seem to strongly prefer a substantial team project, reputable internship, or prior job when hiring new grads.
Without that, there's too much fear that you'll get someone who doesn't understand code reviews, writes unmaintainable horrors, or is generally inculcated into the write-once, read-never pattern of class assignments.
