I thought guitars typically get a French polish which does use shellac.
That nitrocellulose form is only really a problem in bulk form, like back when it was used for movie projection film.
Flakes of the lacquer just burn fast and may continue burning without additional oxygen, but the thin film inhibits any detonation waves across the surface, while the liquid lacquer form inhibits such by dilution in a solvent.
Afaik the final product is pretty safe but handling the chemicals while working with it needs precautions.