I'm glad they made some improvements to security as a result of this finding. This "attack" is still very specialized though and requires local access which (as mentioned) could've exposed the user to keyloggers and other malware.
Yes, it requires an attacker in a powerful position with local access. However, it does not require special privileges or techniques that may trigger endpoint security (such as keyloggers or memory dumping). The only requirements are reading a JSON file and making a single Windows API call to retrieve the key.
It sounds like this required both local access AND a Active Directory Domain Administrator account (which should have triggered EDR at some point) which is the end game anyway. They just managed to hop out of the AD environment to a non-ad server because of the other password being in this vault. Glad they made it more user interactive to decrypt.
No, the final one only required local access as the user in question (this is mentioned after the one you're referring to that required AD Domain takeover).
It's the difference between the evil maid attack (someone sneaks a keylogger into your turned-off machine whilst cleaning your room) vs local privilege escalation (the sysadmin installs a game and now your entire network is owned).