According to the linked article, a restored wallet is toast as well, because anything displayed by the screen can get grabbed and sent to the bad guys:

[…]they have installed an additional chip that intercepts the transmission from the Secure Element to the built-in screen and recognizes the displayed letters of the seed phrase […]Recognizing the characters alone doesn’t help the perpetrators yet, because the wallets fundamentally work offline. So the perpetrators have also installed an LTE modem, a tiny eSIM module, and a small antenna, all powered by the accumulator already built into the hardware wallet. Thus, the seed phrase is transmitted via mobile phone to the perpetrators, who thus gain control over the cryptocurrency assets secured by the seed phrase.