I think the frustration with changing policies is valid, but we should also consider their side of the situation.
Unis usually watch industrial revolutions from far and have several years to experiment and come up with an approach that mostly works before pushing students through those policies and coursework. This revolution threatens to destroy their business, so they feel an urgent need to do something, even if slapdash policies much better changed quickly.
AI is throwing a wrench in the normal workflows because:
(1) it can be seen as an existential threat to Unis (either their business model or the value of having their diploma),
(2) it is undercutting the value of a Uni degree because that diploma doesn't increase your odds of getting a good job right now,
(3) even people in the workplace using AI aren't working with consistent policies. Tokenmaxxing, then Token-efficiency. You might be prosecuted for a crime if you put confidential customer data into the LLM machine (my CEO sent an email warning about this to all employees), but all of your incentives are to move so fast that might be the only option available. Most of the time it has more to do with negotiating the uncertainty around what is the role of the human in the SDLC (ideation, planning, design, coding, testing, review, maintenance, iteration, coordination, etc) and what is the role of the many agents.
(4) Students are coming to Uni with AI as a habit and might need to change those habits to adhere to Uni policies. The little ones are getting access to LLMs early so the habits are formed early.
(5) Teachers / professors have always had to contend with cheating (how to detect and how to punish). Teachers can use a calculator to build the test (eg. Ensure the contrived numbers on a math equation are solvable and to verify the answers on their answer sheet). That doesn't mean that students should have access to a calculator if the purpose of that unit is to learn the concept without the use of tools.
As frustrating as it is for you, it is almost certainly as frustrating for the professors and department heads.
The cost cutting is a normal headache in all aspects of life. Welcome to capitalism.