I am not defending ledger but I think they said this will be shared between three companies with different geo locations, France, United Kingdom and United States.
For encryption they are using Shamir Secret Sharing, that is a bit strange for me since they never supported that scheme in ledger before (unlike Keystone or Trezor).
They have said that first your seed phrase is encrypted, and then that encrypted seed phrase is split in to a 2-of-3 Shamir's scheme, with one share given to each of those companies. They have not however, as far as I am aware, said anything about how your seed phrase is initially encrypted, what encryption algorithms are being used, how the encryption key is generated, or who stores it.
If two of the three companies return their shares to your new Ledger and you combine them, then all you can do is recover your encrypted seed phrase. Without the decryption key, you cannot restore your wallet. Where does the decryption key come from? Who is providing it? We simply do not know.