A broken device won't be running the default OS anyway.
The point of this is to take all the working hardware that is currently running a soon unsupported version of Windows, which can't be updated to a supported one because the hardware does not support the newer version, and make it run supported software, so the user does not discard the hardware.
On my Ubuntu 24.04 bos here the lo interface is also in state UNKNOWN, but I have no problems with accessing the network or even ping 127.0.0.1 (the interfaces ip/localhost).
A reason I self-host stuff is privacy. When I host my data it's my data. It's not owned and kept by a billion dollar company somewhere, that is willing to sell it to make a quick buck.
So it's my way of making sure that my data really is my data and that it is only shared with those I want to share it with. Some applications require a server component to achive this (eg Immich), so that's why I self-host those.
They started doing that in a couple of years back. Saw quite a bit of backlash in the Linux news media at the time.