The systems should be cut off from sensitive administrative data, but a malicious student would at the very least have access to the other students' data with an LPE.
> Who is really running anything like this in 2026 and for what purpose?
Am I parsing your question correctly?
My point is that if you do, you probably shouldn't run, for e.g applications which need production db credential, or hold sensitive data on these boxes, or .. whatever.
Edit: I use FreeBSD extensively, for various things -- but shell access to them is restricted to the sysadmins..
often it's ssh'able with things like rbash and other restrictions and almost always you, well, can run something there (as you can edit php/other files right from web management ui).
Hordes of this (in Linux world).