I've read Manufacturing Consent more than once - it's one of my favorite books and Chomsky one of my favorite thinkers (really dismayed that he associated with Epstein but I digress). Anyway, you've got it backwards.

The propaganda model is explicitly not "capital determines what headlines are credible." Chomsky and Herman go out of their way to distinguish their structural critique from the crude conspiracy-theory version where owners call up editors and dictate coverage. That's the strawman critics use to dismiss them.

The five filters work through hiring practices, sourcing norms, resource allocation, advertising pressure, and ideological assumptions - not direct commands from capital. The bias is emergent and structural, not dictated. Chomsky makes this point repeatedly because he knows the "rich people control the news" framing is both wrong and easy to dismiss.

It's also not a general theory that institutional journalism can't accurately report facts. Chomsky cites mainstream sources constantly in his own work - he's not arguing the New York Times can't report that a building burned down.

Applying the propaganda model to whether People magazine can accurately report on a celebrity homicide is a stretch, to put it mildly. You've taken a sophisticated structural critique and flattened it into "all institutional journalism is fake, trust nothing."