In my university, (US, state school,) we had a software engineering course exactly like this. It was great in theory, but in practice, the experience was rushed, the codebase was poor quality, (layers upon layers of nothing features with varying code quality,) and the background knowledge was completely ignored. The application we had to work on was a Tomcat Java Web application with an Angular frontend, when neither of those technologies were taught in any other classes (including electives.)

This approach to education can work, but I think simulating/mocking portions of this would have been more helpful (it could've been a teacher/TA managed codebase we started with rather than the monstrosity passed between generations of students who were inexperienced.)