Given all that, one could argue that the LLM is being baited to cheat.

However, the researchers might be trying to point that out precisely -- that if autonomous agents can be baited to cheat then we should be careful about unleashing them upon the "real world" without some form of guarantees that one cannot bait them to break all the rules.

I don't think it is fearmongering -- if we are going to allow for a lot more "agency" to be made available to everyone on the planet, we should have some form of a protocol that ensures that we all get to opt-in.