Is this urban legend still taken seriously? I mean, it was a thing 40 years ago, but now there is hardly anyone "with nothing to lose" that can reach anywhere without a good amount of luck.
I've met dozens of people who have made a good living from starting off with nothing. Do they specifically have to be in a garage?
Luck plays a huge role. So does talent, skill, and opportunity. You screw up if you think of it in only one of those terms to the exclusion of the others.
I'm one guy in a home office starting up a new company. The garage would be a terrible alternative.
Been doing it this way since 1996. It's just as much fun as it was then, when you've landed on something that excites you. There's still a vast amount of land to explore.