Any time you have a computer interacting with the outside world in an asynchronous fashion you basically have to have some form of buffering which takes the form of a queue/fifo. A linked list is the most performant/natural way of modeling a queue in our ubiquitous computing infrastructure.

I/e in a DMA-based ethernet driver, the ethernet MAC receives packets asynchronously from the processor, perhaps faster than the processor can ingest them. So the mac interrupts the processor to give it new packets, and the processor can't sit processing the packets in the interrupt context, so it needs to put them into some ordered list for processing later when it has downtime. In a true embedded system, the memory for this list is going to be fixed or statically allocated, but you still don't really want to have an array-style list with fixed indexing, as you'll have to manage what happens when the index wraps around back to 0 etc, so instead you just construct a linked list in that pre-allocated memory.

I wouldn't say linked lists aren't really used in high-level applications, as I said they're used all over the place whenever you have external asynchronous communication, it's just that modern high-level frameworks/libs totally abstract this away from most people writing high level code.