Earlier quoted context omitted.
This is one of my favourite interview questions too. I ask a design question that technically could be solved using the specialist skillset I interview for but it would be insane to actually do that in the real world. It's a good opener to see how practical and open minded they really are.
Is it? I have long thought that most things business people are using a spreadsheet for belongs someplace else. They are easy ways to run quick what-ifs or make lists, but generally the right answer is update the system so they don't need a spreadsheet. If the data is financials - why can't your accounting system give everyone the view they need from the shared system? Othertimes what they really need are a database…
There are plenty of reasons that a department within a company will prefer spreadsheets. Software is not the answer to everything and also this is the same problem you get when Microsoft introduces those pesky 'Power App' developers etc or previously the Sharepoint 'web parts' etc....essentially someone who kind of feels they are the 'owner' of some information then decides to formalise the process in their own little way.
Now you have a person wasting a bit of time making their little tool but you've also got people complaining that someone's now essentially taken control of it etc. At a former employer our procurement team used spreadsheets to track basically everything but importantly everything on our PCBs - every single component and their suppliers and prices etc (various factories around China usually). This would have been a horrible thing to try and formalise in a web app just because of how often they were all changing their own conventions etc (often suppliers changing what information they gave to them, too). It would have been a wild goose chase to formalise it and more than the trouble it would be worth.