They ensure controlled extensibility and version compatibility.
In API design, sealed classes offer controlled extensibility, ensuring that only intended subclasses can extend base classes. This helps in maintaining backward compatibility across versions, as the set of subclasses is predefined and can be managed more predictably. For instance, a sealed class `Notification` might only allow `EmailNotification` and `SMSNotification`, preventing future API consumers from creating incompatible notification types.
Additional Notes
What are the consequences of using sealed classes in API design?