In fact, LastPass and others had some pretty embarrassing vulnerabilities that can be exploited due to being an extension.
There's no question that a local PM has a significantly lower attack surface.
Here are some stories:
https://blog.lastpass.com/2019/09/lastpass-bug-reported-reso...
https://www.csis.dk/newsroom-blog-overview/2021/moserpass-su...
There were several classic web vulnerabilities for 1password and bitwarden when it comes to extensions.