Dangerous I would have thought so too on the oil and lacquer .. seems like it wouldn't work at all .
Then I read about it in a luthiers forum and gave it a try , so far on Purpleheart, zebrano,and lacewood it has worked well to my great surprise. On woods with a high natural oil content , there may be more of an issue.
The trick is , you have to let the body dry completely so no oil is at the surface . A few weeks is a good idea , then sand with a 1200 grit .
After 35 years + of woodworking I still pick up new tricks .. open minds lead to innovation