"Don't run that shit on a credentialed box with data you care about" is addressing real threats, not some goofy nation state thing or abstract security research.
If you let the footgun machine constantly generate new code and run it on your computer, you're just asking for data loss and bad shit to happen.
Docker isn't a great solution but it at least doesn't let yolo code delete files or access env vars or read the contents of .ssh/
> my browser extensions, my npm install, my VSCode plugins, my curl | bash
Yeah, and you shouldn't yolo those, either lol. If they didn't come from a trusted source, you need to read through them. If you don't want to, don't use them. That's not paranoia, that's, like, normal.