You are running code on your CPU in ring 0 all the time? No. The same way a sandbox gives a whitelist approach to security — this app by default should have no filesystem access. It does want to open a file — ask the user whether it should be able to or not.
Security is upheld, user control is given, everyone is happy.
What kind of sandbox does Windows have? All I could find was about a pro/enterprise feature but even that has to be explicitly started and I doubt minecraft users used that.
Not having admin rights is almost uselessly crude as a “sandbox”.