You are in a bubble. Some segments use essentially no AI, while others have gone all in. Just because the type of engineers you're surrounded by do engineering that is obsolete doesn't mean that's the case across the board. All the best game engineers I know still write at least 90% of the code (probably closer to 99%). The bad ones use AI nearly exclusively - just like yourself. They can't create very complex or performant game systems, and they struggle even with highly unique or interactive game UI systems. I've looked over their code; almost every choice is bad, and it's clear why their projects completely collapse after a certain point. They simply can't build super complex, performant, or novel systems.

I'm going to assume you do the type of engineering where all the hard problems are solved for you already, and you are merely connecting inputs/outputs and hooking up APIs. Because, frankly, the value in "software plumbing" is gone; anyone with a Claude license can do that now.