I think the confusion is "IT" the sector and IT the job. Yes, computers are information technology, but saying SWEs work in IT is kind of like saying a pharmacist "works in medicine". Being "in IT" typically means you set up office computers.
Is this wrong? I mean, they do work in medicine. You can always be more specific if you want, but I don't see anything wrong with that statement.
> Being "in IT" typically means you set up office computers.
This is probably a thing that varies regionally. Here it is very common to call all the aforementioned jobs "the IT industry".