alt Hacker NewsLastPass, designed for regular users and one of the most popular password managers, had a breach of user vaults. If they hadn't implemented E2EE then it would have been more devastating than it was (crypto wallets were found from vaults with weak master passwords).
Google's security record at avoiding that kind of breach is just about the best in the industry, and their system that handles custody of password manager secrets is designed to withstand even a compromise of their production infrastructure (https://security.googleblog.com/2022/10/SecurityofPasskeysin...). I would advise almost all users to worry more about getting locked out of their password database than about that. Of course, I would also advise almost all users not to self-custody cryptocurrency.