Some people have very little idea about load-balancing, DNS, database scaling (replication, sharding, etc), fault tolerance, graceful degradation, queues, throttling, caching, you name it.
https://www.educative.io/courses/grokking-the-system-design-...
An ideal interview should reflect the actual work you'll do during the job. And I think system design interviews accomplish that job pretty well (certainly much better than coding interviews). Will you ever have to design and build a system like you during the interview? Likely not - a startup, while does require building a lot things for scratch, rarely requires the scalability and intricacy outlined in these interviews. While large companies will have the components broken up by team, so you'll often be silo'd into just one part.
That said, knowing how your systems work at a high-level is much more useful than knowing something like shortest-path algorithms. Even if you are silo'd, understanding upstream/downstream interactions can be crucial.
This is just every candidate, certainly at the senior level. It’s impossible to use these questions to discern anything. Even asking them to give these details about past real systems they designed you’re just getting the same 5-layer-deep inception rote memorization of everything they could be asked and every follow up contingency.