The consensus at the time that CVE was created (and only now I realize there were actually 2 different CVE numbers for 2 issues related to the same feature) was that this isn't really a vulnerability, as this is a core feature of the extension.
The CVEs were created by a third-party, without consulting with the FriendsOfFlarum team first.
I remember discussing this at the time, this might have been in the private FriendsOfFlarum Discord.
An official response we published at the time we found out about the CVE can be found here FriendsOfFlarum/pretty-mail40
Based on that, I don't think we took any additional action. We could definitely make the README more clear on the risks, which are not exclusive to this extension (the Extension Manager in particular is a much more dangerous extension in this category of risks). It would have been nice to have a variation of the extension with templates that don't allow custom code, but this would make the extension more complex, rather than just allowing customization of the blade template used by the existing internal templating system.