It is not scary at all!!
When you consider that a 300A 1200V IGBT module has just those kind of bond wires.
and they perform quite well.
potted with a transparent sticky gel and bare bond wires.
and these power devices ARE quite rugged, and they get HOT.
Now take this TCM, it is subjected to thermal stress, but not generated internally (I assume so , because the die looks more like a custom microcontroller and several medium power drivers but nothing high power to cause significant increase in the internal die temperature)
I think that failure is more likely to be a passive failure (tantalums) rather than a silicon failure due to overtemperature