I'm not sure the description is what actually happened. It doesn't have the ring of truth to it. That said, LastPass is not deserving of any trust as a password product of any kind. That a password was captured by a keylogger on a Dev Ops home computer shows that they don't understand how to secure remote computers, the meaning of defense in depth, the importance of proper login authentication, or how to secure data…
it's because the market doesn't actually pay for a secure product, but the appearance of one.
The end-user buying cannot really discern whether the company's product is actually secure. There's no third-party standard auditing (let's say, a gov't organization).
Banks are run securely, not because I personally audit them, but that the gov't mandates liability onto the banks for losses from their insecure systems. So the banks are secure, because they stand to lose a lot. The same must be mandated for all companies imho, or insecure companies would continue to exist and thrive.