I'm talking about the authentication to the lastpass server, not the decryption itself.
Lastpass won't serve you the encrypted blob if you don't authenticate with their servers. To do this it computes a different key (using a different derivation function, but using the same "master" password as the encryption key) that it uses to log into the lastpass server.
This key cannot be used to decrypt the blob because of the different derivation function, but the client asks the server how many rounds of the kdf to use for a given user by posting its email to https://lastpass.com/iterations.php . As you can see it defaults to 5000, but the client will gladly accept any value.
Therefore the server can tell the client to send a key derived from only one iteration, it which case this code is run: https://github.com/lastpass/lastpass-cli/blob/623b344e898958...
In other words if an hostile party gets access to the lastpass server they can instruct your client to send your master password protected by two rounds of sha256. If you have a strong password (as you should) it's not an issue, but clearly you can't count on thousands of rounds of the KDF as you might think.