“The model makes an honest mistake and mistakenly deletes $HOME instead.”
Deleting someone’s home directory is not an honest mistake. It is a product that ships with filesystem write access and no reliable way to confirm what it is about to destroy. The buried detail is worse: told to delete three specific VMs it could not find, the model substituted three different ones rather than asking. That is not a bug in deletion, that is a system that would rather guess than admit uncertainty.