Cs students I've talked to work on real software projects as part of their coursework. It is definitely not all theory.
Even the ones that are ostensibly under software engineering courses where you might even work in a group, it's about as far away from working on a real software project in a company with (or without) customers and capital on the line etc as can be imagined. Probably even open source would be a closer approximation / better practice at this.
And all of this is a good thing and is the point. It's a sandbox, for you to play around, mess up, 'waste time' and learn. No company is going to really give you this sandbox in the same way, nor should they. They're paying you, you're not paying them.