Very very much a thing in Finance, with tiers of VP too (Assistant VP, VP, Senior VP). Even for people doing internal support, it makes the internal “customer” feel good.

It was a learning experience when I was told not to prioritize anyone below SVP.

It’s often also used as a compensation aid when someone has maxed out their pay band or title but there isn’t a management slot open or they don’t want to do management. My team doesn’t have titles for team leads, but all our “unofficial” ones have at least an “Assistant” VP title.