To the best of my knowledge, nobody has ever seriously claimed that Rust (or any other general purpose programming language) can fully prevent logic errors.

Rust's advantage is that it can prevent logic errors from becoming memory safety vulnerabilities (and separately, its type system makes some - but not all - classes of logic errors more difficult to introduce).

This doesn't appear to be a memory safety bug. It's a data handling error, and the "RCE" in question is that the tar code can be fooled by a malicious tarball into writing files with arbitrary permissions at arbitrary paths (which is... actually something all tarballs can do, so I'm not really following why this is being treated as severe).

But to your point: yes, it's a good example about how security bugs live at all layers of the stack and that being checked against memory corruption does nothing to prevent you from writing bugs in the semantic space.

if it was in c, who knows how many memory corruption bugs would be found before they stumbled upon this...