That's a rather interesting power supply design...
It almost looks like the regulator's sole purpose is to provide power to the primary side switching control circuits until the power supply starts switching, then it gets power from the auxiliary winding of the main transformer, labelled as "BIAS1" and "BIAS2" (strange naming, as it has pretty much nothing to do with biasing of anything), this is rectified and regulated down to 14.5V by a switching buck regulator. Since the 14.5V is greater than the 12V that the VB405 regulator is set to, it basically supplies no current at all once the SMPS is up and running normally.
Since the linear regulator is only supposed to supply power for a brief amount of time during the initial power-up, that would explain the lack of heatsinking.
This also brings about another question: is the buck regulator working as it should and supplying the 14.5V it's supposed to during normal operation of the power supply? If this circuit is not functioning, it would explain why the linear regulator ran so hot and eventually failed, as it would be powering the SMPS control circuits full-time instead of only at startup.
What I would do first, is to apply about 20VDC to the "VBIAS" test point with the unit disconnected from mains, using a bench power supply. Then check for 14.5V VCC. If that's good, check for a switching waveform at the gates of switching FETs. That way you can assess is there is other damage or issues with the primary side of the power supply, in a safe way without ever applying mains voltage to it.