Can't you drop privileges immediately after getting the privileged socket? Why do you need to hold on to them?
I am assuming you and hackcasual aren't familiar with Golang, since you aren't seeing familiar fork()/setuid()? I'll try to explain:
"dropping privileges" term comes from the old tradition of forking a child process from a privileged parent. Teleport, instead of calling fork() directly as you'd probably expect C code to work, uses Golang's syscall.StartProcess(), which does the entire fork-and-drop privileges logic, and the new privileges (user-specific ones) are passed as shown in the line of code above.
User SSH sessions are sandboxed in unprivileged processes just like you'd expect.
a lot of proper-distro-packaged apps (e.g. nginx on centos yum/ubuntu apt) spawn 'nobody' processes