I mean, why not? I think a lot of people under-20 will instinctively think of “erase this whole disk and put a new file system on it” as a very “settings” sort of thing, not something to be done in a separate application like Disk Manager. (Which is technically a hold over from when OSes did not ship with extensive disk management tools, so normally you would have some flavour of Norton Utilities installed after-market.)

If you’ve grown up with phones and tablets, anything that’s a change to the device, even if it’s an operation and not a setting, is in “settings”.

I get it, doesn’t mean I agree with it to be fair! I miss old system preferences as much as you.