A lot of students use phones and chromeOS, both of which obfuscate file system. Remember majority of gen z are still in college or school.
And even after you graduate - how many job’s actually require you to interact with the FS? In my company for example people are supplied with a laptop with everything already pre-installed. Majority of folks would just use couple of the apps they need for their job and a web browser.
As for files - they just have an endless list of stuff in their downloads and desktop folders.