Some universities teach this way. In Europe, there are a few institutions that shifted to problem and project-based learning during the reforms of the 1960s.
A few notable cases are cited here: https://www.pblfuture.aau.dk/about. As far as I know, some American institutions use the same approach, e.g. Olin College.
IMHO, when done well, i.e. having an equally strong focus on theory, this leads to excellent learning outcomes.
However, at undergrad level, schools are reluctant to teach this way because it requires a lot of supervision.
A few notable cases are cited here: https://www.pblfuture.aau.dk/about. As far as I know, some American institutions use the same approach, e.g. Olin College.
IMHO, when done well, i.e. having an equally strong focus on theory, this leads to excellent learning outcomes.
However, at undergrad level, schools are reluctant to teach this way because it requires a lot of supervision.