I don't believe that people who can design and code are as rare as folks seem to believe, either. What seems more likely is that there are a LOT of coders who are extremely fluent in CSS but aren't particularly gifted when it comes to making things look good.
It wasn't that long ago that designers understood that they couldn't just hand off a 2D comp of what they want to see. The job isn't done until the output can be integrated into the app. Nobody gets to launch cows over the wall and go for lunch.
You mean Fireworks. Photoshop was for graphic design. Web designers used Adobe Fireworks. Figma is a successor to Fireworks, not Photoshop.
Everyone used whatever they were familiar with regardless of the purpose of the application.
As someone who has done front-end development for both web and mobile devices for a very long time in the pre-Figma days I was handed a lot more designs that were mocked up in Photoshop than Fireworks.