It doesn't work. It just looks like it does to the viewer!
The "exploit" is a loadable shared library that replaces the
getuid, geteuid, getgid and getegid functions with dummies that
always return 0. So the code in bash that looks up the
prompt and all thatgoes and looks up roots .profile. The result is
that you get what looks like a root prompt, and your calls to
id return 0 :-)
But it can't really change uid. Try touching a file in / !
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