Obvious when you say it out loud. A problem when you say it in a security review.
Here's the test. If your vendor can reset your passphrase and your data survives, they hold the key. Not you. All of them work this way and none of them are hiding it. That's just what someone else's server means.
We built the one where we can't. Our servers hold gibberish. The price is real: lose your passphrase and it's gone, and we can't get it back for you. That's our core design, not something in a footnote.
For a tool that stores the exact wording your company runs on, that should be the floor. Not a premium tier.
Fair trade? Or would you rather keep the reset link?