How do people have the guts to configure a commercial VPN through their router?

If the VPN server gets compromised, will they not expose their whole network to the attacker(s)? Isn’t it safer to run a VPN through an AppVM or ProxyVM? That way the attacker will only have access to the specific Qube you’re running your VPN through, or am I getting something wrong?

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It wouldn’t expose their network, but it could expose any unencrypted traffic going through the VPN provider. The VPN client doesn’t allow connections to go both ways, it doesn’t allow the provider to access your network.

People add the VPN to the router because they want to use it with devices that doesn’t support VPN themselves, typically this would be something like IOT devices. Or because they only have a limited number of connects they can make.

Running the VPN in a qube gives you more control, but it really doesn’t do much if the provider is compromised.

Physical separation could have some advantages.
Also you could still use different VPN providers or servers at the same time. It requires more hardware though.