I'm not some JS guru but I've done a few and I'm wondering why would I need to know this? To me this looks like the type of question that is there specifically because people answer it wrong, they know they answer it wrong and you know they know they answer it wrong so it makes them lower their demands in terms of pay rate.
Lots of weird things (bugs) can happen when you don't understand how the event loop work. I would definitely pass a "senior" javascript dev that don't know/understand the concept.
A senior should know that JavaScript runs single threaded with an event loop, and therefore doing heavy calculations will block your user interactions.
If you don't know this, you also won't know when to use WebWorkers etc.
Juniors can learn, seniors should be the ones teaching them. Seniors should define the architecture of your solution, and solve weird problems. You cannot do this without proper in-depth knowledge.
There are plenty of ways to see how this person came into contact with the event loop concept, whether in theory or in practice.
And yeah, you might agree on Node behaving differently, but that just proves the question is very bad. Even with "in browser" clause the answer can change tomorrow for all we know.
It is like asking about undefined C++ behavior in an intentionally very bad example.
By the way, only 1 out of 10 frontend developers can answer what the event loop is, according to my experience.
So when you ask "What is the JavaScript event loop?", most will stare at you not knowing what it is. So then I jump to the practical side. They at least should have worked with either setTimeout, async/await and/or events. So then you start asking for practical consequences of the event loop, such as what happens with an infinite loop after setTimeout or await, or during handling of an event. That is a real practical example that they should know. If you don't then you don't know neither theory nor practice.
A few weeks ago I interviewed a front-end developer who said that in his current job he rolled into production some code that blocked the UI for nearly 1 minute, and that problem was only noticed in production because during testing they didn't used realistic data.
He then said that his approach to solve the problem was to rewrite everything from scratch using a faster framework.
Unloading the blocking tasks to web workers wasn't even in his universe of potential alternatives.
Suffice to say, he was not hired.
If you're applying for a front-end position and are oblivious to basic GUI principles, such as how not to block the UI, then you might not be lucky.
It could be very important. Like the difference between something running at the right time or not.
He Had no idea how to do anything other than write books.
That gets him a foot in the door alright, but I don't think it'd let him avoid those interviews?
I've done plenty of interviews, and the amount of years someone worked does not mean they are technically capable.
By chance, last week I interviewed a frontend JavaScript expert: couldn't explain 'scope', couldn't explain 'function context', didn't know what happens when setTimeout() is followed by an infinite loop ("After 10 seconds or so the browser will probably timeout the loop"). A junior cannot know everything, a senior should be able to pull a project and team.
Personal advice to you: if you are really good but cannot show it in an interview, try to land a job at companies with ex-colleagues, where they are able to vouch for your technical skills.
If a colleague that I respect vouches for someone (s)he worked with, (s)he is practically already hired.