That means you have bad middle/upper management. Large tech companies have heard of the Peter Principle and don't promote this way; they have separate technical tracks.
Which is not to say they're doing everything right.
Which is not to say they're doing everything right.
Relevant: https://www.spakhm.com/p/parallel-tracks
"Why did all major software companies settle on parallel career tracks? To keep engineering managers from developing loyalty to engineers."
Having no track even better. Some people like what they are doing and the field is constantly changing. You want your best surgeons doing operations not managing other doctors.
You need some kind of title so people can feel responsible for career growth and so you can calibrate against other companies' pay at least; it doesn't need to control what kind of work you're allowed to do.
And, as you say, to the degree that position titles mean something cross-company, it gives a point of comparison.