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I only use agentic development tools in qemu VM that has no production access or host shared folders, and the only secrets there are development. I still have my Git ssh key there, but I never use ssh agent to load the keys. The worst that agentic tools can do to me, is to install keylogger and compromise my ssh key and password, but even then my deployment workflow includes creating release in Github, which is not possible via ssh key only. I was very lucky to avoid the hack yesterday, as I use Claude installed via OpenVSX, but even if I installed the compromised version, the damage would be minimal.
I am doing similar with Debian 13 images in QEMU. Only access is to code specifically SSH in. On some, I am taking it a step further and my SSH key is not present at all on the bot. I add it as a git remote from my host into the VM and push and pull from there and then push to GitHub myself. So the agent has no path to GitHub either.
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Hell yeah that's the most sane and efficient personal dev sandboxing work flow I've heard and shows you know your stuff. Just basics but executed very well.