There's probably a good argument to ignore rule breaking and little deceptive marketing if the student outcomes are good but it looks like in-aggregate that they weren't and that students were better off taking a loan and attending Oregon State's Post Bac in CS or Hack Reactor.
And if you really believe you can succeed as an autodidact with minimal mentorship from previous batches of students, 42 schools[1] offer that for free.
It's shameful YC was still shilling Lambda one year ago[2] even though there's been a mountain of evidence about its deceptive practices for many years.
There's no reasonable argument in favor of deceptive marketing. This idea that we should tolerate bullshit from people trying to make money needs to go away.
If the outcomes are good for the students, there won't be an issue with making them be straightforward about it.
