Just give them an F and expel them ASAP. Choices should come with consequences or choices do not matter.
And what do we do after an entire generation matures without developing skills or knowledge, and takes over our politics and economies? Education and excess authority do not mix. Public universities are right for wanting to meet kids where they are... and then bring them to where they should be. That's how education works. We can save the elitist crap for elitist universities; the working man still needs an education…
I do not believe fixing social upbringing and elementary study skills is the function of university professors teaching under-graduate/graduate courses. If needed, the university can start a separately funded "Basic Foundational Skills" course for that, but it should really NOT be the job of the professors teaching their respective domains to handle this.
If a student does not have the basic skills or discipline necessary to handle an undergraduate class, they should not waste their time or the professor's time. Let them go so that someone qualified can take that spot.