BYU-I skirts this requirement by hiring so many adjuncts, which don't count as permanent faculty. It feels like gaming the system.

I have attended Utah State for undergrad, a highly ranked private school for grad school, postdoc'ed at and Ivy League school, and now am a tenure-track professor at a Carnegie Very High Research state school. Here is the breakdown of how adjuncts and non-terminal professors have been used at each institution.

Utah State - My only courses where a grad student taught the majority of the course were English 101, English 201, and a general studies Ecology of Our Changing World (cupcake class to fill a need).

Private school - Humanities and general studies courses were taught by grad students. The school had a requirement that all students teaching courses had to have a Masters. Engineering had limited courses taught by non-PhD instructors: CAD courses, machine shop courses, and capstone design (the instructor was from industry, but each team had faculty mentors). I taught on occasion when my advisor was out of town, but only after I had a Masters and probably 3 classes per semester.

Ivy League school - They prided themselves on all courses being taught by tenure track faculty. Of course, they could afford that kind of luxury.

Current Carnegie Very High employer - many humanities and general studies are taught by grad students. None are taught by BS students who aren't enrolled as grad students. In engineering, we tend to have clinical faculty who are non-tenure-track but are still not considered adjuncts. As with the private school, most of these are for lower level classes, CAD classes, machine shop classes, experimental laboratory classes, etc.