Yes. That's exactly what college is. If you don't have the resources to effectively individually evaluate a student's output, you shouldn't hold a graded class.
Then let me spell it out for you, since you seem to be unaware:
There are many, many colleges that have no grad students. Period. They are undergraduate colleges.
Expecting any college or university to just be able to scale up the amount of manpower required to grade their classes/exams by a large multiple is absurdly unrealistic. I assure you that most existing colleges do have plenty of resources to effectively evaluate individual students' outputs, if they don't have to assume that anything submitted digitally is written by LLMs.
That new requirement is a massive change to how they operate, and it's incredibly rude and short-sighted to be dismissive and contemptuous of institutions that have trouble adjusting to it.
These colleges certainly have English, Philosophy, Art, and History classes, all of which require papers to be submitted and the exams consist of essay questions.
That Computer Science is somehow a privileged subject where the exam grading must be automated is elitism of the highest degree.
The grader has to grade N exams.