This appears to be a mild form of overcorrection, where teens are taking a special case with "wish" and extending it into the past tense.
The following sentence is perfectly correct:
I wish public schools would teach English grammar better.
But this is a special case of "wish", where you're specifically talking about a wish that someone else would do something differently. It indicates that you're particularly irritated about a situation that's not under your control, but is under someone else's, and you're pretty sure they could change it if they wanted to.
Ordinarily, "wish" operates by (essentially) the same rules as backshifting:
I wish the schools taught English grammar better.
In this case, there's no particular implication that teaching better English is under the school's control. Out of context and without hearing the intonation, it's just a neutral statement: the speaker wants English grammar teaching to be better than it is.
It's therefore pretty clear where the mistake is occurring. The teen is thinking of the special case ("I wish schools would teach better") and backshifting it, instead of going back to the regular case ("I wish schools taught better") and backshifting that.
Now, there's no particular reason why the special case can't apply to the past, too. It's perfectly comprehensible to express the same concept in the past tense, that you think the schools could have taught better than they did. And this is probably what the kids are thinking when they use it this way. If we're approaching English descriptively, then it makes sense and would probably be understood by the average speaker. But approaching it prescriptively, it's not considered correct and should be avoided in formal speech or writing.