Lots of shared hosters don't use VMs or containers. It's some arbitrary number of people logging in to a shared system, each one with a home directory under /home/THE_USER_NAME. i've had several such hosters over the years (thankfully not right now, though).
Things like HPC clusters are multiuser & don't entirely trust their users. If they did we wouldn't need users/groups/permissions etc in the first place.
And then there are users running claude-cli and friends who may just find it convenient to use a local root exploit to remove obstacles.
So containers don't protect you, only a VM.
How so?