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That is super frustrating, but it almost seems like you dodged a pretty crappy situation. I mean if they are paying less but expecting more, would you really be happy there? I know it sucks now, but it almost seems like a good thing that they passed.
I really just think employers have too many options to be blunt. They can unfortunately find everything they need and want and for somebody to take the pay cut while doing it. Why they continued another interview already knowing it would be an issue is a mystery to me though.
Job titles are not an indication of role. Different companies have different interpretations and different needs out of their roles. You shouldn’t expect that a title be any indicator of your exact suitability for the role.
As for getting you to the second round and dropping you for an acknowledged weakness - I get it sucks, but I would assume that you showed strongly for your other capabilities in the first round which got you to the second round, but on a second view, another candidate showed better in your areas of strength while be stronger than you in MR. It’s why there’s multiple interview rounds. You’re not just trying to prove you’re good enough, but you’re competing with other candidates.
Take the weekend to deal with it and get up stronger on Monday.
I was instantly rejected for the Senior version of the role I just started at, though here the Senior versions are considered Managers who often lead multiple teams.
Visual Storyteller
I definitely don’t know if this applies to you, but sometimes internal hiring policies come into play. If this position is being used to promote within, some policies require that the position still has to be posted externally and you must allow someone to interview for it. It’s great to have opportunities to grow. It sucks for external candidates who never had a chance.