Yes, an authorization token generated by an admin would have access to do anything with the API that the admin user could. I like to request a list of all the API calls that the LTI provider vendor is making with their application. This does a few things. First, if they struggle to provide these, they either outsourced the integration, do not support it, and have no idea exactly how it works, or they don't know how to talk to you and their developers. Either way, it's a big red flag that they aren't someone I want to be partnering with. Second, based on the API calls they are making, you can see exactly what data they plan to access and if that differs from what they have told you they are using, you can have a conversation about it. Finally, you can make an account in Canvas that you only use this integration with and by viewing the page views, you can confirm they are only accessing the data they say they are.
Creating non-admin accounts is an option and I have one, but I mostly use it for testing things as a non-admin user. If I don't trust the LTI tool provider that is requesting an authorization token, I don't click authorize. Often I will also go into my account settings and revoke the access token as soon as I've completed whatever tasks needed with the tool. This means I have to click authorize a lot more often, but as a bonus, it's nice whenever I'm doing a workshop on UDOIT if I get the authorization screen that most everyone in the workshop is getting too as they have never accessed the tool. This is also nice for checking the tools unauthorized event handling. I'm a Canvas Admin though, and not an instructor so I don't have anything that might be wanting to batch upload grade data or something on a schedule. If you revoke the token, naturally that scheduled task is going to fail.
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