No, the problem is much more basic than "taking over your computer," it looks like the compiler generates incorrect assembly. Upon visual inspection I found a huge class of infinite loops, but I am sure there are subtle bugs that can corrupt running user/OS processes... including Docker, potentially. Containerization does not protect you from sloppy native code.
> Don't use it to compile production code!
This is an understatement. A more useful warning would be "don't use it to compile any code with a while loop." Seriously, this compiler looks terrible. Worse than useless.
If you really want AI to make a toy compiler just to help you learn, use Python or Javascript as a compilation target, so that the LLM's dumb bugs are mostly contained, and much easier to understand. Learn assembly programming separately.