If Hot Wallet developers already have access to users' databases, they certainly know what each person's private key is. So, what is the security of a Hot Wallet?
Just make sure that the wallet you are using is open source and having an excellent reputation in the community. Example of such hot wallet are Electrum and Sparrow bitcoin wallet. Also know that it is not about wallet to be a hot or cold wallet, if the code is not available to the public to review, you can not know if there is a backdoor that can reveal your seed phrase to the wallet developers. To also do not know if the seed phrases are pregenerated. That is the disadvantage of using close source wallets.