What am I missing?

[Paolo Bolzoni]

Actually I thought there is a TPM that is needed to "talk" with the
storage. If one fails to input the password enough times, the TPM
destroys the key.
You can say that it is false that the storage get destroyed but, since
it AES encrypted, after destroying the key it is pretty much the same.

If it was only software, where the AES key is stored? And why not copy
the storage?