During the night I charged my iPhone 7 like every night for many years, in my office. In the morning I found the phone completely burned.
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iPhone XR, iOS 17
It’s probable that your battery was old or that it was damaged. It’s possible that your charging cable was improper. It’s certainly unusual. Buy a new phone.
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Lithium ion batteries have long been known to entail a degree of risk. I guess Apple could continue to use the old style batteries which you would have to change about twice a day at about $8 per day of use. No? Apple customers would abandon their devices in droves if Apple started doing that? Well now you know why they use lithium ion, and does pretty much every other rechargeable battery product sold out there by any company. It is widely known they have a degree of risk, particularly when they get old. You must have missed all the warnings on packages, plus all the ones at airports, plus all the ones on garbage containers, etc. If you think you have a faulty one then go to an Apple Store and speak to them about it. If you want to play it safe, keep anything with a lithium ion battery in a metal bucket with a sand layer at the bottom.
Personally I think my risk from a lithium ion battery is a lot lower than going for a ride in my car.
Apple does have safety warning for the iPhone which you should probably read: Important safety information for iPhone - Apple Support
"An iPhone battery should only be repaired by a trained technician to avoid battery damage, which could cause overheating, fire, or injury."
Lithium ion batteries are always a bit of a fire risk. That's why you can't just put them in your garbage or bring a large number of them onto an airplane with you. As mentioned by muguy, there could be various reasons why yours failed. I don't think there is anybody you can put the responsibility on, if that is what you are looking for. Nevertheless, I reported this to Apple just in case they are interested.
I think such a big company should take responsibility for its products. They can break. But burning is a serious problem because it puts the buyer's life in danger. I use my charger for three more phones. Am I risking my life?
iPhone 7 burned while charging: Responsibility inquiry
