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Android didn't always work like that. A few years ago it used to allow access to internal storage as soon as you unlocked the phone so if you ever used the phone while it was charging you would be exploited.

With how horrible phone makers are at updating things I would not be surprised if there was a significant number of old android versions hanging around.

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Even so, I don't see how you exactly you go from internal storage to loading malware or exfiltrating passwords. Exposing internal storage doesn't let you access the isolated app storage where private app data and passwords would be stored, only common areas like downloads and media.

Lacking any technical details, this article reads like one of those scary chain forwards.

When I still used Android, lots of apps would put all sorts of data on the "SD card" storage. This could've included credentials.

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