* Depending on how WASM is used, one gets safety guarantees. For example, memory is not executable.
* Privileges are reduced as a WASM module interacts with the environment through the WASM runtime and the embedder
Now, when one compiles C to WASM one may well compile things with bugs. A memory access bug in C is still a memory access bug, but its consequences can be limited in WASM execution. Whether fail-stop behavior is guaranteed actually depends on the code the C compiler generates and the runtime (allocation/deallocation, concurrency) it sets up.
So when we enumerate immediately available security options and count WASM as sandboxing, this is not wrong. But WASM being an execution environment, one could do a lot of things, including a way of compiling and executing C that panics when a memory access bug is encountered.