Indeed. That's a neat plugin, each time you lock the database, it rolls forward your HOTP key some number of rounds, then uses the results of those rounds to encrypt a piece of key material for the vault. Then, when you go to decrypt, as long as your HOTP app hasn't generated more than the number of rounds it rolled forward, it can generate the decryption key from the HOTP stream and decrypt the vault. A little fragile, but a neat implementation.
> right after you enter your 2FA malware can steal the decrypted database out of memory.
There's probably a creative protection here where each key is encrypted individually, but you'd still need some solution like the above HOTP trick or the attacker could scrape the key information out of memory, then decrypt each entry individually.