Yes I would apply, quite a lot of people do drop out of uni and do an apprenticeship these days due to many different factors, you can do either a level 4 or a level 6 and still have a successful IT career.
A degree apprenticeship, is the best route to go down as the entire course is funded by your employer and you won't be doing a standard degree but a digital technology solutions (which is a bit easier than a normal degree in terms of what you study). however they are very competitive and sometimes do not offer what you want (Even tech companies may have only business side roles with not much technical work).
However if you don't want to go to uni a level4 is still good, and in some cases better as companies sometimes only offer level4 and they are also easier to get a good grade in than a degree, and in the future if you want to go to uni normally your company will allow you to be either fast tracked or given a significant advantage of getting a level 6.
For both apprenticeships levels unless your applying for one that will send you to either a RG uni such as UBS, JPM, or GS do then grades don't really matter, you only have to have what they are asking for as a minimum, but make sure you do extra courses and learn in your spare time before you apply to have the best chance of gaining the apprenticeship.
(sorry for long answer but i know someone who has been in a situation like yours and this is the advice I gave them)