I assume GP is talking in context of OpenAI/general AI research, where you need a PhD to apply for the research scientist positions and MS/Bachelors to apply for research engineer positions afaik.
A phd scientist may not be a good fit for an engineering job. Their degree doesn’t matter.
An phd-having engineer might not be a good fit for a research job either… because it’s a different job.
But being an engineer isn’t just a lesser form of being a researcher.
It’s not a “level” in that sense. Like OAI isn’t going to fire an engineer and replace them with a researcher.