This is by design. The passwords are stored in files which have
appropriate permissions, and the system must be able to retrieve them to
transmit to wireless networks. Obfuscating the passwords in those files
in a recoverable way would not improve security.
** Changed in: network-manager (Ubuntu)
Status: New => Invalid
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https://bugs.launchpad.net/bugs/1060907
Title:
NetworkManager stores wifi passwords in plain text
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