sometimes an institution will give an ms as a consolation prize for time spent not being able to finish a phd [0]. in those cases they can be upwards of 5 years, but they certainly aren't industry driven
[0] often a leadership or personality failure of the PI
Why do people do this kind of "well actually" thing? Yes you're correct but it has nothing to do with whether the degree itself is intended for that.
My program had an exam after 2 years. You could fail completely, do well enough to leave with a MS, or fully pass and continue to a PhD.