Convince me Bitkey doesn't have security vulnerabilities

I am in no way a security expert, just a concerned HODLer. I am looking to move to multi-sig. Bitkey has been held up as one of the user friendly ways to get that done. But I have concerns on how this security model works.

You have 3 keys. You have 2 of them. One on the device and one on your phone. The third key Bitkey holds. Here is what is concerns me. First - you don't hold the seed phrases\keys.

Second:
From the website:

Hardware key
Bitkey’s hardware key is generated and stored completely offline in a secure enclave. Only your fingerprint can enable the key, so it’s useless to anyone else.

App key
Bitkey’s app key is stored, as the name implies, in the Bitkey mobile app. A backup copy is encrypted and saved to your personal cloud account for recovery.Since the backup is encrypted in your cloud account, Bitkey can never access it and it’s useless to an attacker without your cloud credentials and unlocked hardware.

Server key
A third key is stored on secure servers to help with recovery if you ever lose your Bitkey. Server keys run in an AWS Nitro Enclave. Any code changes require multi-engineer approval with hardware-token authentication.
So your app key is stored online and the one Bitkey holds is online. And if you loose your hardware Bitkey is able to restore that key. So Bitkey holds all three keys?
One of the first things I learned about $BTC security is keep your keys as far away from online as possible. Don't put them in a password manager or anything like that.
So do I have all of this wrong or am I being over paranoid?