Upgradeable contracts are set up using the initialize() function.
SmartVaultManagerV5.sol being such a contract, it should be set up in this function.
Currently, the initialization is handled by the hardhat upgrades functionnality which takes care of everyting.
Throughout the evolution of the project, the framework used may switch from hardhat to another one (e.g. foundry) which doesn't have such a functionnality.
As a result, this contract might never get initialized (or worse, initialized by a malicious user) which could lead to unexpected behaviors.
Manual analysis
Set up all the storage variables and permissions in the initialize() function
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