From the root container, depending on volume mounts and capabilities granted to the container, they would enumerate the host directories and find the names of common scripts and then overwrite one such script. Or to be even sneakier, they can append their malicious code to an existing script in the host filesystem. Now each time you run your script, their code piggybacks.
OTOH if I had written such a script for linux I'd be looking to grab the contents of $(hist) $(env) $(cat /etc/{group,passwd})... then enumerate /usr/bin/ /usr/local/bin/ and the XDG_{CACHE,CONFIG} dirs - some plaintext credentials are usually here. The $HOME/.{aws,docker,claude,ssh} Basically the attacker just needs to know their way around your OS. The script enumerating these directories is the 0777 script they were able to write from inside the root access container.
> IT NEVER ESCAPED.
You haven't confirmed this (at least from the contents of the article). You did some reasonable spot checks and confirmed/corrected your understanding of the setup. I'd agree that it looks likely that it did not escape or gain persistence on your host but in no way have you actually verified this. If it were me I'd still wipe the host and set up everything from scratch again[0].
Also your part about the container user not being root is still misinformed and/or misleading. The user inside the container, the container runtime user, and whether container is privileged are three different things that are being talked about as one.
Also, see my comment on firewall: https://news.ycombinator.com/item?id=46306974
[0]: Not necessarily drop-everything-you-do urgently but next time you get some downtime to do it calmly. Recovering like this is a good excercise anyway to make sure you can if you get a more critical situation in the future where you really need to. It will also be less time and work vs actually confirming that the host is uncontaminated.
I'm going to sit down and rewrite the article and take a further look at the container tomorrow.