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Companies will look at both past experience and potential, on the assumption that past performance will give an indication of what will happen if one is hired. There is a disconnect with entry level jobs currently because that's just how markets work. It's looking like 2025 will set records for layoffs, and with so many experienced people looking for work, there are people willing to take any job. In that atmosphere the definition of entry level doesn't matter, someone with a few years of experience may be happy to accept such a position.
Past experience, now more than ever. With so many qualified people looking for jobs, companies are even less inclined to take a gamble on "potential." They want proven commodities.