My pet peeve is that the entire TPM design assumes that, at any given time, all running software has exactly one privilege level.
It’s not hard to protect an FDE key in a way that one must compromise both the TPM and the OS to recover it [0]. What is very awkward is protecting it such that a random user in the system who recovers the sealed secret (via a side channel or simply booting into a different OS and reading it) cannot ask the TPM to decrypt it. Or protecting one user’s TPM-wrapped SSH key from another user.
I have some kludgey ideas for how to do this, and maybe I’ll write them up some day.
[0] Seal a random secret to the TPM and wrap the actual key, in software, with the sealed secret. Compromising the TPM gets the wrapping key but not the wrapped key.
Can't that just be done by sealing to PCRs? By protecting the unsealing key with PCR which depends on the OS (I usually use the secure boot signing key PCRs since they are different between systems and stable across updates) and some PCR which gets extended by the OS (or for stuff stored in NV making it readlocked during boot). Then any process that launches later can no longer access it and booting another OS also doesn't help.
How could the TPM ever have an idea or be able to verify the other sides' privilege level, besides knowing that the other side is able to access it (the TPM)?