That's good to hear, it's been hard going updating it for FM23 but i'm getting there slowly!
I just had a quick look to at the managers in the game at Vanarama North/South level and most have Continental badges with a few having National A/B. Only 2 have none at all but both have managerial pedigree which proves your initial assertion.
The main issue I have I suppose is that because of the way the game works if you have a continental badge when you start that low you are very likely (unless this has changed in FM23) to get offers from very high up the pyramid which is wholly unrealistic.