I agree with the GP. Why would selling it solve the issues with the product?

How much of the product can be salvaged?

They have a well-known brandname, but it is arguably radioactive now.

The product as software can be rebranded, but why go through this effort if the ubderlying software has proven faulty so many times in the past?

A similar effort can be invested in making open-source password managers better, so there is a clear opportunity cost to salvaging LastPass.

Plus a sale would surely only directly benefit those most responsible for LastPass' issues. It would mean they are directly rewarded for their incompetent execution..

It seems like nothing is necessarily wrong with the software itself. Its the opsec surrounding the software. The most secure software in the world can be pwned if you can get access to the lead dev's system or the build system itself.