Do universities prioritize research experience over industrial experience for master? For PhD, it's obvious that since you'll be doing research, prior research experience would be a larger plus over industrial experience.

But for a non-research (course-based) master's, do universities still prefer candidates with more research experience or would they prefer candidates with more real world experience?

Assuming both research experience and industrial experience are rather entry level (e.g. junior research assistant vs junior developer).
Based on my experience (for thesis based MSc): a big yes. Because universities are mainly interested in research and publishing papers. Although industrial experience might be relevant but research experience is key.

However, for course based master degree usually students are not required to publish. Thus, it might not be an extra point to have research experience.