We've noticed the same thing happening -- especially with math. The people who have a C in the prerequisite and "hate math" are the most likely to sign up for online math class. Our failure rates there are absolutely horrendous -- and they get lumped in with all the other sections. So we're currently getting flak from admin because of the massive failure rates in x math class, which are tremendously influenced by the massive failure rates of the online sections -- and yet we can't just not offer it online, because admin is very proud of their "complete a degree with distance learning".
(although we are looking at only offering it in summer so that at least people can't try to do it when they have a full load of other classes).
At SJSU, they did these remedial math classes online and the fail rate was nearly 50%: https://www.mercuryn...ourses-fizzles/
What a disaster!