Coinbase Vault and Customer Control question

I'm considering putting some of my bitcoin in Coinbase Vault due to the multisig option. I can't seem to find a detailed answer on how much control Coinbase has over the users vault in the events of a Bankruptcy or internal Coinbase actions to try to take control over said wallet.

For example, if I select two multisig users (myself and someone else I trust), Coinbase automatically becomes the 3rd multisig. As such, my understanding is withdrawal requires 2 of the 3 multisigs.

Therefore, if Coinbase ever has an issue such as suprise account withdrawal locks/Bankruptcy (like Blockfi), or if they end up selling more bitcoin on the exchange than they have in reserves, in both situations, my coins would be safe as long as both of my multisigs don't give access?

Or is the bitcoin in my Vault really just paper bitcoin that is still technically just on coinbases ledger as owing to me?

**UPDATE** To add that I went ahead and created the Vault, but am very dissappointed that while it may have been different in the past, the Vault option now does to not actually offer what I thought it did. Basically just adds a 48 hour waiting period, and an email back up. Coinbase still appears to be the sole owner of the keys, and as such, it is likely they still have the Crypto in the general fund and not segregated. Personal cold storage appears to still be the only option to protect your funds from exchange volume/reserve issues and Bankruptcy risk. Please correct me if I am wrong.