Colleges have opened a Pandora's box

It isn't an intentional policy. A combination of lost lawsuits by the NCAA led to the current messy system. The NCAA deserved it, exploiting student-athletes for decades, saying they weren't entitled to anything other than their scholarship.

Students sued over NIL and won - NIL is allowed now.

Students sued over transfer restrictions and won - students have unlimited transfers now. This makes every student-athlete a free agent after every season.

It's also one reason the NCAA basketball tournament had so few upsets this year. Before NIL, if you were a star player at a mid-major school, you had no financial incentive to leave, so you stayed until graduation. Now, a benchwarmer/backup on a power conference team can make $100k-$500k+, so all the good players from less wealthy schools transfer for the $$$$.

There's one solution, which the NCAA is resisting: A national collective bargaining agreement with the players. That would let the NCAA override all the court losses, because a CBA takes priority over antitrust law. If they had a union and CBA, then the NCAA could impose uniform sensible rules. There would be benefits for the players also in a CBA, as it would likely lead to guaranteed contracts for the players in exchange for transfer restrictions.