What harm exactly do you think giving a single semester reprieve is going to cause these students?
Quite a bit.
As a student: Grades are one of the clearest signals on whether you're a good fit for a major or topic you're interested in, you need more work, or you need to trim down the number of classes.
Not providing that clear, cumulative signal is a major disservice to the students.
Also, UofM is expensive so dragging it benefits only the financials for the school.
Won't they need a reprieve next semester since they'll have to go through the same thing?
Employers thinking a UofM degree is a joke.
Hiring practices expanding to include multiple take-home exercises to prove competency.
Students not fully learning foundational knowledge they’ll need later because the class is an easy pass.