I have one Incognet VM and I just use it as a proxy for torrent traffic via Wireguard. E-mail stays on a dedicated elsewhere.
Since the article mentions a similar situation on BuyVM, I'm wondering if this is just a case of the hypervisor allocation block storage and not wiping it first. In that case, it's not a vulnerability in getting stuff from other peoples' VMs. It's a situation of reusing the same blocks for a different VM allocation.
Anything you put on a cloud host (or even a dedicated host) can be fucked with. Even if you use full disk encryption and have to login via VNC to unlock it on boot, the host can always get your disk key out of memory. A dedicated sever can always monitor the remote KVM.
I can see why a provider wouldn't zero out storage on allocation. That would be incredibly show. But they could zero old volumes x days after cancellation before returning them to the storage pool.I think the real takeaway here is zero out your VM disks before you cancel a service.