I think the key information from etmel is that the circuit was built by the instructor, which implies that it worked. I hope that he or she intended their students to learn the difference between a circuit diagram used to build a circuit and a circuit diagram used to analyze a circuit. They also seem to encourage students to make any reasonable assumptions, which is what I have done in my classes. Sometimes my colleagues and I do write nonsense problems, usually because of limited practical experience, and we can choose our words poorly so that the meaning of questions can be ambiguous. Often these broken questions lead to more learning than perfectly crafted academic questions.
So, let us start by taking the question at face value and allowing for reasonable assumptions. The first thing I did was to simulate it using LTspice. Actually, I cheated and simulated an equivalent circuit using 1N914 diodes and a 1.4V power supply. The solution was very reasonable mainly because the diode model in LTspice includes resistance. Currents do go through the roof if the voltage is raised a bit. The 2V, 20mA assumptions for the series LEDs is quite good. The parallel diodes each carry about 10mA. An interesting variation from 'idealized' 2V 20mA conditions is that the voltage across the lower series diode is a little above 2V and the voltage across the parallel diodes is a little less. If students know anything about the nonlinear I-V curve for diodes, they will understand that this is because the operating point is at a lower current in the parallel diodes so the voltage is also lower. High school students generally learn to solve equations graphically, so the instructor could possibly be relying on that knowledge. I personally think that diode load lines make great problems for practicing graphical solutions because the answers can be checked experimentally.
I also built the circuit using a 4V 'battery' that I configured using three somewhat depleted AA cells. This ends up being very much the same as driving a single LED with a 2032 coin battery. I have been having students build little LED circuits using these batteries for years. I mostly do outreach with kids as young as 6 and teach electronics to first year EE students and non-EE engineering students at the oldest continuously operating technological university in the English-speaking world. Actually, I retired 3 years ago, so I should really say taught. The circuit works just fine. Even with my old, under voltage batteries, it has been running for 24 hours and the voltage has dropped to 3.68V. I have used the coin battery experiment to get students to think about what is missing in the circuit diagram. Something is limiting the current. When they look up the properties of the battery online (everything requires online searches), they find that batteries have resistance. They also learn to look up component information and learn to ask simple, useful questions like 'do LEDs have resistance," from which the learn that they do, although not a simple linear resistance. I attached a photo of my setup. My office is also our guest room and often the only available horizontal surface for simple experiments is the bed.
Bottom line, I think, as is shown in the many good responses to this posting, questions like this can lead students to explore the real world of circuitry, or any other concept, actually. They do not need a lot of math, but if they have good math skills, they can learn even more. Dave, you are absolutely right that this is a good question for job interviews. Such open-ended questions should help both the interviewer and job applicant to get to know one another.
A recommendation for the great people who have written such interesting comments to this post ... find a good science or tech teacher and adopt them. Offer to help make their classes better by using your extensive experience to make student learning better. The best opportunities are based on mutual respect where both you and the teacher are good at what you do and are comfortable with your own limitations and talents. I am reasonably knowledgeable about a lot of practical EE stuff, mostly because I have done experimental plasma physics for nuclear fusion projects for more than 50 years. However, what has made me a much better teacher is that I have a sort of kitchen cabinet of practicing engineers who love having an impact on EE students so they share their thoughts and ideas with me on a regular basis. Our conversations are usually amazing. We definitely work in different worlds with different missions and schedules, but we have the same passions for understanding electronics and other related topics.