“Should be illegal unless it’s one of the tiny handful of US colleges that do not accept any federal financial aid”
I don’t at all understand why it should be illegal if federal money is involved. Whatever the case may be, public or private, colleges are still voluntary. You are perfectly free not to take the class.
It is not a class—it is a graduation requirement. It is not even slightly related to a class. I am told it used to be, but no more. It now looks like straight work for no pay.