The liver produces BOTH forms of cholesterol. What’s really important is the ratio of LDL to HDL, which is why doctors are getting away from the “bad” and “good” descriptors. You actually need some of both, just more of one than the other.
BOTH forms are also found in animals. Again, it’s the ratio of one to the other than is important, and an animal that exercises regularly tends to have a better ratio of LDL to HDL, which is why lean meat (which usually implies a more active animal) is usually viewed as healthier than fatty meat (which implies a sedentary or even obese animal)
Cholesterol levels that are too low - while rare in modern society, they’re usually associated with starvation - can be just as unhealthy as those that are too high, as cholesterol is a vital component of many if not all hormones as well as all cell membranes. Deficient cholesterol can result in low levels of all the body’s hormones, which can result in all sorts of widespread effects and deficiencies. If your body had no cholesterol it couldn’t properly utilize vitamins A, D, E, and K - which would be fatal. The myelin sheath around all of your nerves, without which they cannot function, is rich in cholesterol. It is the precursor to bile, without which NO fats can be processed by the body, whether animal or plant origin.
Human breast milk contains cholesterol - clearly it’s a vital and normal part of the human diet.
Cholesterol is vital to the human body. The problem is not cholesterol, it’s having too much cholesterol. That whole “too much of anything, even a good thing, is a bad thing” concept.
Just so you know - having cholesterol that is too low is associated with (as noted) malnutrition/starvation, liver disease, overactive thyroid, underactive adrenal glands (they need cholesterol to produce their normal glandular products, so too low means they lack needed raw material), Marfan’s syndrome, and leukemia (and possibly other cancers). There are a couple of genetic diseases that result in very low cholesterol levels - abetalipoproteinemia, which leads to mental retardation, stunted growth, muscle weakness, slurred speech, coordination problems, difficulty walking, and gradual blindness. Then there is Smith-Lemli-Opitz syndrome, which comes with malformations of the heart, lungs, kidneys, digestive tract, genitalia, and mental retardation along with abnormally low cholesterol levels. Or how about hypobetalipoproteinemia, which is extremely low levels of LDL - the so-called “bad” cholesterol - and normal or even elevated levels of HDL. It comes with thyroid disorders, liver disease, wasting syndromes, and a greatly elevated risk of cancer.
Bottom line - you need cholesterol, even LDL, or you’re not going to be healthy.
Vegans have LDL in their bodies, too, even with their peculiar avoidance of all animal products.
Production of cholesterol, like production of anything, requires energy. Prior to our current era’s abundance of food, getting sufficient calories was a matter of life or death and people really did starve to death at times. Being able to absorb cholesterol essentially ready-made from the diet meant that instead of expending energy on making cholesterol the body could use that energy for something else - growth, wound healing, making glucose out of fat stores to run the brain until more starch could be found… whatever.