There's a lot of issues ranging from lack of parental involvement, to school funding based on enrollment which creates an incentive to "go easy", to too much parental involvement and pressure, to fragile kids and parents who can't handle objective standards and failure, to education that has overemphasized feelings and under emphasized stem, and on and on. And, while it's easy to frame this as a resources issue, it's not just poor kids - think about the trophy generation, this basically that same idea but academically. I do think that COVID really exacerbated a lot of this stuff and did harm to young people who lost important socialization opportunities, which, not coincidentally is the group entering college right now.
Unfortunately, the slipping standards and competence results in real world consequences ranging from unqualified workers to discontented youth who think they just need to do the bare minimum to get ahead. It started with the millenials who would get pissed when they'd do a job for two years and wouldn't be running the company, and it's only getting worse.
As my mom would say, the path to hell is paved with good intentions.