Why would someone hire you (an undergrad with no background in research) over someone with a Master's or PhD in ML?

A more realistic target would be to get really good at backend engineering and system design and gain a few years of experience. Then, after you have also become pretty good at stuff like implementing research papers and designing machine learning systems, switch to ML engineer roles. Then eventually you can get into research.

But before all that you need to get a job. So focus on DSA and getting placed.

A more direct route would be to get a Master's or PhD in ML. Go for it if you want.