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Could LastPass be an intentional backdoor from some Government or entity?

Perhaps, but barring concrete evidence it's safer to assume that it was bad practice rather than a malicious endeavor.

"Never attribute to malice that which is adequately explained by stupidity."

I assume it’s probably a trade off the consciously made for, in their opinion, a better end user experience experience.

Why would they claim breach and source code stolen instead of simply and silently hanging over vaults then?

Because they were never intending to be breached, it ruined the plan. The less-than-12 characters vulnerability is a joke