The problem as
@Superlyte27 mentioned is
thermal runaway
It is irrelevant if the battery pack is watertight. A lithium battery's worst enemy is heat.
The most probable cause of a lithium battery over heating is a short circuit in the electronics and/or wiring.
There are many ways and points that can cause a short to happen, starting from a defect at assembly of the battery pack to the wiring from the battery to the vest, a defective battery prematurely going dead in the pack, and the bms.
Once the battery goes into thermal runaway there is absolutely nothing you can do to stop it other than (pun not intended)runaway, and the heat from that one battery burning will cause all the other batteries in the pack to also go into thermal runaway.
Anything electric or combustible inside a dry suit that you don't have the option of shutting it down reliably from the outside is a big risk.
Doing a techdive or a cave dive, you have enough risk to deal with already, adding a potential fire hazard in the mix is not wise, especially if there is other options to make it all safe.
A recreational dive in a dry suit can also become catastrophic with a battery in thermal runway. you still have to get back to shore or on the boat which could take long enough that you will be in a spiral of trouble.
An exterior battery that you can disconnect like a breaker in you electrical panel at home just make a whole world of sense. If your electronics only gets stuck in the on position and you cant stop it consider your self lucky compared to potential bigger hazard of having a ticking timebomb in your pants.
you can easily go on YouTube and see lithium batteries in thermal runaway in action, it will be a eye opener.