Except it does, just not in the context you're thinking. I know you understand this but may just be missing the obvious purpose of this isolation so let's just talk through all possible electrocution scenarios.Product deserves criticism since it heavily advertises isolation when in reality it doesn't provide anything like that with respect to safety ground.
Earthed equipment:
Live connects to Neutral -> Massive overcurrent main breaker trips.
Live connects to earth / chassis -> Massive overcurrent, but RCD trips first as it is faster acting than the main breaker.
Neutral connects to earth -> Usually a tiny current flows due to inductive pickup, RCD trips.
Now a person shorting live to neutral is dead.
A person shorting live to earth is saved by an RCD but critically still got electrocuted according to any workplace standards.
A person shorting neutral to earth is safe anyway but still has minor current floating through their body.
Earthed equipment plugged into this transformer:
Live connects to Neutral -> Massive overcurrent fuse on the isolator blows. LIMITED DOWNSTREAM CURRENT to the main breaker. Power stays on.
Live connects to earth / chassis -> Nothing happens. System now has a reference to earth.
Neutral connects to earth / chassis -> Nothing happens. System now has a reference to earth.
Now more importantly you as an engineer can now *safely* earth lift your equipment under test without risk of electric shock. You can now do differential measurements through your oscilloscope without the magic smoke coming out or electrocuting yourself when touching probes.
The purpose of an isolation transformer is so that it's user (electrician, engineer or service tech) can touch any one part of the circuit at whatever voltage and not get harmed.
None of this has anything to do with audio of course and it's still good to see these measurements so people don't buy them for that purpose, but they still very much provide isolation for their intended application. We do however need to stop idiots buying these for their audio gear not knowing what they are actually for.