Up until recently, Little Snitch monitored network traffic in kernel space.
If an application is running as root, you are similarly able to use the lower level APIs and completely "bypass" Little Snitch. I cannot find a good alternative source for this other than the Security and Privacy Guide [0]:
It is worth noting that these firewalls can be bypassed by programs running as root or through OS vulnerabilities (pdf), but they are still worth having - just don't expect absolute protection.
[0] https://github.com/drduh/macOS-Security-and-Privacy-Guide#th...
I don't run Little Snitch any more, so it may no longer work that way. Some software (games seem to be an egregiously bad offender) insists on communicating with seemlingly random IP addresses and not using DNS to resolve them, and it's hard to run any kind of filtering software or parental controls such as Screen Time successfully. I make do with outbound filtering at my router.