But it will not (and hasn't been designed to) magically remove crashing bugs from your code, just as (e.g.) Javascript doesn't protect you from calling an undefined function.
But those bugs can't do any harm to your machine except crashing the WebAssembly application itself.
*this doesn't mean the sandbox itself doesn't contain bugs of course, but it's the job of the sandbox to prevent stuff running inside it from accessing stuff outside
That has always been the very nature of the web.
Web Assembly, like other web applications, will be executed in a sandbox separate from other things. Isolation alone does not make it safe, but it does prevent corruption of other things.
This is why many websites execute advertisements in an iframe, because the code that comes across is not trusted and often not safe. The unsafe code will still attempt to stalk and/or attack the end user, but the iframe prevents that malicious code from corrupting the serving page. There is no reason expect anything different from WASM.