I think counter offers in general are pretty rare, especially in a bad job market. Like unicorn rare. In almost 30 years I’ve never left a company where it was even mentioned during the resignation. The company just says “Well, bye.” Like the Tombstone meme.

Counteroffers for lower-level engineers are fairly rare. These companies believe that L4s are sufficiently common that another one will come along. It’s unfortunate especially when an L4 is seriously outperforming their level. But that’s a big company for you.

Counter offers aren't rare, but they require good timing and finesse to be effective as leverage. You can't simply shove it in your manager's face and use it to demand a raise. You may first need to maneuver into a place where you play a crucial role in a project, for example.

Obviously not everyone can do that. Then again, not everyone can get offers whenever they need also, especially since doing so requires a large network and regular interviews. Most people have neither.