With the discussion of 2 out of 3 custodians being compromised, don't forget that this set up has a single point of a failure, and the breach of this single point of failure is enough to steal your coins.

Just like every other Shamir's Secret Sharing set up, there is a single point of failure in the device which is used to create and communication the secret shares. For Ledger Recover, even if we assume that the Nano S/X hardware device itself is secure, the only way for those shares and the associated decryption key to reach the third party custodians is via your computer. Therefore, your computer must store and transmit all the information necessary to empty your wallets. If your computer is compromise while you do this, or if the data is accidentally stored in memory and recoverable, then your coins can be stolen by compromise of your computer alone. This is the exact same situation as any hot wallet.

Just as a cold wallet which has connected to the internet once or twice is no longer a cold wallet, a hardware wallet which has exposed your seed phase to the internet once or twice is no longer a hardware wallet.