I do. I think it's good not to box people in, where certain work is only for (my company's equivalent of) L63s and an L60 isn't even allowed to try. But when I do see L60s try, they usually need someone to come by and intervene, because there are critical skills that come with seniority that they don't yet have.

To be more concrete, one thing I often notice in junior engineers I mentor is that they're very "task brained". They understand their job to be nothing more than a sequence of development tasks, so they struggle to understand what's happening or how to help when it comes time for important things that aren't tasks. One guy I knew was frustrated that he didn't understand how priorities are set, and yet would never read the customer stories in his email that the company used to set priorities.

Op here, yes I do believe, the levels aren’t perfect though. I believe in them because I was once L60 and L61, I knew intimately what was expected of me then and I can assure you the work I was doing as an L63 could be done by someone few levels down, which is to say I was underutilised. The team was also not the right fit for me.

Levels tell you two things, the scope and autonomy you get in your work and more importantly compensation. From the compensation view point, it does tend to be “gamed” frequently by developers hired from outside who might be out earning devs promoted within.