The pattern I've always seen is the opposite: job titles are exaggerated, to the point that test engineers are called "senior enterprise product developers", folks who run the tools are called "senior engineering directors", etc.

Do get your master's if you can, I am telling you that as somebody working in the industry. A master's (or a PhD) is a very distinguishing feature, while two years of experience is not. Also, two more years in school can give you (different kind of) insights and deep knowledge which two years of work can't. Having achieved a high level of education before you start a full-time job and getting family will reward you handsomely in long term.