Earlier quoted context omitted.
Surely even having an LSH stored is a potential compromise - e.g. if my password happens to have the same LSH as somebody else because I've used "Secret-123" and they've used "Secret123", then you've presumably got a better chance of guessing what my password is than if the LSHes weren't stored (if you can't get from me directly, you can try to get it from others who have the same LHS).
You’re assuming an attacker can access this database somehow? And that the LSH of “somebody else” is reversible? I’ve don’t understand the vulnerability you’re describing.
Well yeah. Protecting against this is the exact reason passwords aren't stored in plaintext.