The job of a Chief Executive Officer is to run the company, which requires a distinctly different set of skills and talent from people who like getting their hands dirty at the workbench.
Thats a very vague job description. Executive's jobs are to make investments that will maximize shareholder return and an executive of an engineering company will only be able to make the best investments if they understand the technology they are selling and their customers. People have been noting how engineers have been running more and more companies, thats because more and more companies rely on technology to drive their growth.
On the contrast I can show you pure business people failed at the CEO post. E.g. John Sculley ran Apple to the ground.
For software company, it could be useful if the CEO knows what software is and the company might find other business models than trending ”enshittification” route.