Earlier quoted context omitted.
If you havent designed a system from scratch, or designed a major change, you arent a senior engineer.
these "system design interviews" often focus on systems at the scale of major consumer internet companies, e.g. "design youtube", "design twitter". How many systems of that scale even exist? 100? Only the core developers of those systems would be considered "senior engineer"?
So isn't going to be something like I would architect my own massively parallel converter database and binaries written from scratch to process all the various formats which is probably closer to what is done in reality. But senior and lead engineers should indeed understand tradeoffs, parallelization, queues, data storage concerns. They are given as questions because people know from a use case view how they generally work.