Any user process can append anything they want to your shell rc (.bashrc, .zshrc). In this case, they added a bash function for a fake sudo prompt. It then uses the password the user entered to run a malicious payload as root.

It’s not, but the grandparent does point out 1 major flaw with sudo being a typically command that goes through normal path discovery. It makes it easier to escalate from a compromised user account to a compromised root account, since the end user is likely to type the root password into a command that can be shadowed in their user space.

Because it is trivial for unprivileged malware to phish the password and escalate to root. No production system should ever ship with sudo.