Getting one degree in engineering increases the likelihood that the person will be higher than average in her software engineering skills. When you have 1000s of applicants and your approach to everything is fairly conservative compared to the private sector, you won't go out on a limb and hire a dropout unless that dropout has a stellar portfolio of some extraordinary work. And it's the dropout's responsibility to get that work noticed in the marketplace.
Usually for software engineers, you are not getting 1000s of applicants unless you have 1000s of positions. It's folly to use cheap filters such as a degree at that point. Especially if your an unattractive employer such as the government.