I use KeepassXC with password + yubikey challenge response. My mental model is that this encrypts my database using my password combined with the yubikey respon

I use KeepassXC with password + yubikey challenge response. My mental model is that this encrypts my database using my password combined with the yubikey response. With this configuration- it appears that I should be able to put my database anywhere in the open. Which leads me to my point: If the password manager is properly used then why do we care if the encrypted databases were leaked?