Re: 1 out of 2 multi sig setup scenario with hidden public keys
The reason is that in both cases you trust them with the same funds and each one is capable of restoring and emptying the wallet.
OP said that the seed phrase A will be in location A, seed phrase B will be in location B and the master public keys will be in location C. Therefore, if someone has seed phrase A/B and that's all they have, they will be still unable to spend the fund.
you do createrawtx after this dude
sign it with your key , broadcast it and funds are gone.
unlike previous moron who'd posted here before you you don't invoke first instruction via debug console inside multisig wallet so node wont append multisig redeem to rawtx