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I don’t think that’s true. Even when Bitwarden server is down you can still access your Bitwarden vault, use and export all passwords. You can’t save new passwords but using existing ones should work perfectly fine. So, when your server is down/broken, export your vault, fix server and get new Vaulwarden instance up and import your vault again. Thats it. I still find it safer to selfhost it than getting my passwords leaked.
Nevertheless, are backups crucial. But it is relatively easy with vaultwarden-backup and the free object storage of AWS, Oracle and so on.