Backup and sync-type software has the interesting engineering requirement that it is expected for the user's device to get completely lost/stolen/wiped, so any key material must be reproducible from the user's password.
Password -> KDF(1) gives you a password-alike: used for logins, server treats this kdf output as a password and stores a bcrypt/argon hash of it, as you would normally expect from a run-of-the-mill webapp.
The client generates a random data encryption key; seals it with the password; and then submits the sealed version to be stored in the user's profile on the web server.
The web server can't unseal the original data encryption key without the original password, and it never sees that, only the KDF(1) version of it.
That's all they've really done here. There is one more level of key indirection for the blobs themselves that i think is irrelevant but maybe useful for key rotation. Totally agree that unpadded RSA and ECB suck as primitives - they were bad choices then, they are bad choices now, and AEAD is a no-brainer upgrade (EDIT: and would close the post-back oracle) - but aside from picking better primitives the mechanism really does seem okay to me. I'd love to hear more from you though,
I think if you have a download link of the form https://foo.bar/#abcdef... you can simply put a large random value there (e.g. 128 bit), use HKDF to derive an ID and an encryption key, use the ID (shared with the server) to store/fetch encrypted data on/from the server and the key (not shared with the server) to encrypt/decrypt it on the client side. This would assume that the ID transmitted to the server over a secure channel and that brute-forcing of IDs to download encrypted data is not practical. Such a scheme would not be secure though if you derived the ID and key from a user-provided password, as the server could then brute-force the password from the ID the client provides.
There is a whole hellacious amount of mechanism in this protocol that doesn't seem necessary at all. I don't know if doing it simply would involve more keys or less keys but it would certainly seem to involve fewer concepts and less ad-hoc invention --- PAKEs are a solved problem, KDFs are a solved problem, key-wrap encryption is a solved problem.
Instead they came up with unpadded RSA, ECB-encrypted key blobs, a single shared key for all the blobs, a post-back proof that is just that broken RSA piped directly back to the server. I don't know, seems pretty bad?