I know that Licenciado refers to mail and Licenciada refers to female. But when its written as Grado de Licenciado en Diseno does it matter if its male or female?
better wording... But does the Grado de Licenciado refer to the object as opposed to the title, as in Titulo de Licenciado? In Mexican docs, Titulo would refer to the title holder and would therefore be Licenciada or Licenciado, depending on the gender of the individual. I am unsure about the Chilean Grado
As you have it written it refers to a male. If the degree holder is female it would read Grado de Licenciada en Diseno. This is true both in Mexico and Chile.
Not just Chile and Mexico but all of Latin America. La licenciatura is the bachelor degree in Latin America and Spain. Licenciado is male and licenciada female.
In the case of Spain, that's no longer true. Licenciado was the traditional pre-Bologna convention undergraduate degree, and Spain also was the birthplace of that degree. However, the new Spanish undergraduate degree is called Graduado / Graduada. By the way, the Spanish Graduado degree is one of the few four-year degrees on the European continent. Most continental European schools offer "British-style" three-year degrees.