Well there is a permission dialog and you need to select the directory to grant access and common sensitive directories are blacklisted.
A malicious ad would probably have an easier time tricking you into downloading and running an executable, which is something that has actually happened many times IRL. Worry about that before worrying about theoretical exploits that nobody has actually exploited in an API shipped in the world's most popular web browser for the past 6 years.
Did you try this?
https://web.dev/patterns/files/open-a-directory
At least it got the number of files in the selected directory including Program Files and Windows\System32
I didn't click upload, so ...