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I would say it's not great to dump a ton of money into the possibility that your kid attends a specific set of one or two schools (looks like you have to choose the right credits for the right schools), but since you can convert to 529 cash anyways it's probably fine. Might still stress your kid out thinking they have to go to those schools just because you want them to

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Kids could actually go to other schools. The fund pays money that’s equivalent to number of credits. For example, if I buy credits for UT Austin, but attends a private university, the fund pays what the equivalent tuition at UT that year. Remaining private uni fees will be our responsibility.

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