This was a great terminal when it was basically Terminal.app + missing features but over the past years it has grown into the proveribal "Kitchen Sink" and now does SO MANY things that I just don't care about.
iTerm2 has become a huge app with many many knobs and levers and all kinds of functionality and integrations. I am not surprised at all that (security) bugs are found. More code, features, integrations means more potential for security issues.
I switched to Ghostty, yes which had a security issue last week!, but at least it is a pretty minimal app with so far no intent to meet iTerm2 in terms of functionality.