I take your point but I'm not aware of any hack of a major provider which resulted in exfiltration of decrypted customer secrets. Providers often enumerate how they prevent exactly this scenario [1][2], but you'd be correct that if your endpoint were compromised, it's probably game over. To be fair in this scenario just typing in your password (not using a manager) would also be game over.

If you want other options, it is possible to self-host (i.e. Vaultwarden). Personally I've been using 1Password for a long time, and their "Families" offering [3] is exceptional for me and has meaningfully improved my family security since the UX is easy enough my loved ones don't find a unique password per site "a chore".

[1] https://support.1password.com/1password-security/ [2] https://1passwordstatic.com/files/security/1password-white-p... [3] https://1password.com/families/