If anyone is wondering how can an entity destroy the concept of their own products - in this case by exporting the seed phrase to outside entities, even if it is encrypted - then wait no more because Ledger will launch their new service, Ledger Recover[1]
Just wait until quantum computers take the industry by storm, and suddenly the Ledger company has to scramble to shut down that service and delete all
backups before the encryption is cracked by a hacker.
This basically means: "Here, you can get your coins back, but first we need to perform an automated KYC check" - most likely with some stupid and flawed 3rd party identification software that can't even recognize a passport if you shove it under your camera lens.