They can’t unilaterally get your seed, they need at least one of the other custodians to send a shard in addition to the one held by them. You don’t need to lie to criticize the product, which is my whole point. The encryption serves to protect against a bad actor trying to get into the servers, which matters whether the server is yours or not.
It is very unlikely that a government is gonna request millions of people’s shards. The more likely scenario is that they have individuals of interest for whom they can definitely get search warrants. And sure depending on the scenario a search warrant won’t do anything if the individual is savvy enough and was able to hide the backups well. But the state attack is not exclusive to this product.