hardly a wpasupplicant bug. I don't think it is a problem nor bug for wpa_supplicant to dump credentials when called with -dd (double debug). Might be an issue in network-manager, please open a seperate bugtask for that.
** Changed in: wpasupplicant (Ubuntu)
Status: Unconfirmed => Rejected
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network-manager dumps plaintext network keys into syslog
https://launchpad.net/bugs/37656
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