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Says who?

It's a protected job title in most state/provincial governments

For example, "In Ontario, the titles 'engineer' and 'professional engineer' are restricted by law ... When individuals are found to be using the restricted title 'engineer,' the courts can impose fines, restraining orders and jail time" [1].

It's just hardly reported/enforced in the software industry because most "software engineers" do not work on things that affect public safety or can result in loss of life.

[1] https://www.peo.on.ca/engineering-licensing-body-clarifies-u...

In most US states, there is a broad "industrial exemption" for engineers who work for an employer.

https://peimpact.com/pe-industrial-exemption/

Depends on jurisdiction. In the UK anyone can call themselves a software engineer.

Everyone knows that software engineer is not an "engineer in the traditional sense". There is no substantial chance of confusing HR or manager hiring for software development when you say to them "I'm software engineer".