Beyond OS kernels , drivers and embedded systems is there any real use for this? I only ask because we were never taught about bit shifting at university and I can't think of a time where it would have ever been useful in my work but despite this it seems to be a very common thing to ask about at interviews so I have sort of educated myself about it for that reason alone.
If you're parsing a binary format you'll probably use bit shifting.
Bit shifting is just bitwise arithmetic. Assuming you did CS or a related degree, it's more likely you forgot about being taught about it. In fact it'd pretty hard to come up with a CS syllabus that does not mention bitwise arithmetic.
These are some subjects where bitwise arithmetic is bound to appear: Intro to Programming, Data Structures, Operating Systems, Computer Architecture/Organization, Graphics, Cryptography, Implementation of Programming Languages.