But if you really want to quit over this: listen to your instinct. I wouldn't, but that's me.
* On one hand, I originally hail from a country where majority of population would have absolutely agreed with this - it "doesn't hurt anyone", it's fine, everybody does it. It's also, related or not, one of the countries where people will judge you negatively if you pay your taxes ("what are you, a schmuck??"), if you don't haggle, etc. It's a hard country in hard times and you're expected to do whatever it takes for yourself to come ahead.
* On the other hand, I've been living in Canada for 20+ years (not the least because the culture and ethical framework work for me:), and while absolutely definitely "shady stuff happens in unseen corners" and not everybody or every org is honest, on average, I could get a whole chain of workers and management fired if I brought something like this to light. Certainly, the average person in average situation would indicate this is unethical, it directly hurts the people potentially hiring you (as they're literally not getting good as advertised), it indirectly hurts your own company (through reputation etc) and market at large (through inflated requirements and misaligned expectations). It's effectively lying for personal gain. It's wrong. And most people have the luxury of treating it as such. But I also know, as per #1, places where it's just how business is done... :-/
It's literally fraud.
> intentional misrepresentation of material existing fact made by one person to another with knowledge of its falsity and for the purpose of inducing the other person to act, and upon which the other person relies with resulting injury or damage.
Everything is fine until "resulting injury or damage". You'd have trouble proving that a guy who falsely said he wrote parallel FizzBuzz with REST API on a 500-client kubernetes rack caused you any harm.
If he gets a job the wages are damage to the employer.
If he gets an interview the time spent interviewing is damage to the employer.
Ugh. Attitudes like this are exactly why the software industry will be stuck with stringent developer interviews with coding questions for foreseeable future.
It's important to take note that if you lie about your educational achievements, you may be breaking the law (depends on the locality).