Last time the SWE industry suffered such wide scale degradation was when Facebook started the move fast and break things movement in late 2000s. It screwed up many companies for a decade before Facebook itself backed off this mindset, with lingering effects still visible today.
LLMs have done significantly more harm than good for the discipline of software engineering. Talent is obviously diminishing but even more worrying is the lack of curiosity and strong opinions in general. Corporate fent zombies.