Ah yes, goal misalignment at its finest.
The students need high grades to get a job, so they focus on ensuring that happens (AI use being the easy path).
The teachers have progression targets to meet, so they focus on ensuring this happens (keep the AI vulnerable assessments).
If you want to change a module as a teacher, good luck getting that work loaded when you should be implementing AI in your curriculum ^_^
That's the real joke behind it all, the use of AI is such a problem because we're turning education into a stamp dispenser - everyone needs an A* to get anywhere.
AI has given every student a path to this - however if industry stopped demanding that universities train their damn staff for them, and instead insist we teach their future staff how to be trained (as well as giving them subject specific knowledge), then we'd see the misalignment vanish. Once the need for an A* to land a good job is gone, then so is the misalignment.