The “Online vs Seated” MBA debate is nonsensical for a number of reasons. First of all, your diploma gives no indication whether you sat in a classroom or your livingroom. If you attend a reputable program, preferably one that maintains AASCB standards and accreditation, you'll reap the same benefits regardless. What's most important is that you attend a reputable school, not an institution deemed a diploma mill by popular sentiment. I believe even Penn State now offers an online MBA program. Undergrad is one thing, but distance learning graduate programs are absolutely becoming the norm.
Second of all, this notion that somehow being seated in a classroom provides better education is antiquated thinking. A number of years back when I was in grad school, the professors had cameras in the back of the classroom and filmed lectures for the online/hybrid students. Some professors, in addition to classroom lectures, also filmed the same lectures from their offices for the online/hybrid students. The online/hybrid students were essentially in our class and were receiving the same content from the same professors as those in the seated class. In fact, some students even elected to visit the professor during office hours.
Third, rather than viewing the MBA as some box they need to check, the knowledge you obtain is far more important. I had interns that came from traditional, seated MBA/MAcc programs that had no idea what they were doing. I also had some interns that came from online/hybrid programs that were pretty bright. In my interviews I would often provide a set of recently filed financial statements and give them 10 minutes to browse and give their thoughts while I stepped out of the interview room. I'd tell them that there's no wrong answers, but I wanted to know how they think. I'd ask them to provide some thoughts on line items, trends, or anything else. The traditional MBA/MAcc students from big programs were just as lost as those that attended lesser known and/or non-traditional program.
We live in the 21st century and have done well during COVID through technology and remote working. Grad school can be completed in same manner. Those that still perpetuate this nonsense and believe you need to attend some high-dollar seated program that requires more of your time are making life expensive and inefficient for themselves and those that listen to their outdated thinking.