Prioritization is Strategy
While most prioritization questions come up in interviews as a test of execution skills, or so it might seem, prioritization is strategic. You are making strategic decisions about what to do and what not to do.
It this article from Reforge, they discuss the "Strategy Stack" and how to think about prioritization. If you look at the 5 parts of their proposed stack, it screams strategy.
Company Mission - The world your company sees and the change it wants to bring to that world.
Company Strategy - The logical plan you have to bring your company’s mission into being.
Product Strategy - The logical plan for how the product will drive its part of the company strategy.
Product Roadmap - The sequence of features that implement the Product Strategy.
Product Goals - The quarterly and day-to-day outcomes of the Product Roadmap that measure progress against the Product Strategy.
Now, let's bring this back to your product managment interviews. When you pick a prioritization framework be it TAM or RICE, you are taking into consideration Mission, Strategy, Roadmap and Goals.
This is why, all good product sense/design/insights responses and metrics for success, as well as trade-off prompts require strategic prioritization tests in the form of you listing:
Mission/Goals
Acknowledging Business Stage & Competitors
Roadmap Considerations
If you struggle with prioritization throughout any case prompt, try reading the Reforge article while considering the points of the S.U.S.S. framework.