"Never store secrets on disk."

Wait till you learn how that API stores cryptographic material.

What's your point? Obviously, a secure server storing encrypted data on disk in a manner where it is only accessible through a secured API is not what is being discussed here.

how do you think the LLM will do required operations when the secrets are stored somewhere other than the disk? It will still need to get them just like the application gets them when it has to do work.