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You are assuming that LPE only applies to the user that holds all the sensitive stuff. But it also applies to users created specifically for isolation. Without LPE they would not have access to anything important even if they were compromised.
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So a threat actor buys access to a managed kubernetes service, or other linux-based shared hosting platform, and now they have access to the computer.

Hell, GitHub Actions would do.

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Is there any service that relies on Linux user separation or containers to separate different user accounts? I’m pretty sure you’re not supposed to do that and the proper way is to run different instances in virtual machines.
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Right, you're not supposed to do that...
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