While it's certainly true that there are some interaction effects between government regulation and the market that cause inequality, its naive to draw the conclusion that this is true for all or even a majority of regulation.

If you read the OP, a primary counterexample is mass mobilization (e.g. government efforts to support WW2) which are a great leveler.

Any engineer who has built systems should understand how complexity increases non-linearly with scale and that interaction effects are complicated to reason about. Debugging the performance of a large system is often really unintuitive. So it is surprising when these same people think there is a simple black and white diagnosis that explains away our socioeconomic challenges, which is a more complicated system than anything we've engineered.