Perhaps. What I see is that we're turning out grads who have no applicable or useful skills, having evaded most learning and all attempts to test them.
As it is, right now, IMO the vast majority of professors are giving open book exams or essay exams, announced on the first day of class, heavily coached throughout the semester, and, the student does it online, on their own time. Increasingly using Chat GPT. At least that's true where I teach and where my friends teach.
Still, the very good students get very anxious. It's always been that way. There's a name for the psychological effect, but the top students are always more self-critical and think they're getting a B or C (or worse) and the students who don't study at all often say the class is "easy" and that they are getting an "A" (they are not).
At any rate, traditional exams do still exist in STEM subjects, although even there, the closed book, in-class exam is almost a thing of the past.
Ultimately, students do face tests (licensure, for grad school, etc) and so many are unprepared.
Do we know what Caleb was majoring in? I guess I keep coming back to school as a focus because, well, he had an exam the next day and he was up very late at night, still interacting with roommates and dog. It's true he could also have been studying, taking little breaks, etc. If very tired and preoccupied, he was at risk for various things (an accident, interactions with bad actors).
IMO.