> A good senior engineer is for the most part able to not write bad code from day one
This seems unlikely. Self contained, I'd go further and say you're not a senior if your code isn't good you shouldn't be a senior.
But what is good code is in context of the codebase. It takes time to get the context of a reasonably sized codebase and no one is doing that in a single day or single week, even the wizards.
I don't agree with everything the OP writes but I think they're correct in that many companies don't value institutional knowledge. To me that is lunacy. I'm not sure how any programmer could think a reasonably complex codebase could be learned quickly. The larger and more complex your codebase the more valuable institutional knowledge is. Adding new actors just accelerates complexity and redundancy. Pushing people to be quick only worsens this. The best thing to do with new employees is get them deep into the code. Have them write/update docs, do cleanup, or other tasks that force them to understand the code and how everything interacts