I am also having issues with this. In my use case, with
NetworkManager-1.0.9.6.4-3.fc17 (64-bit), I have a VPN connection for a
non-root user which is set to NOT connect automatically and NOT allowed
on a system basis. If I do not enter a passphrase I cannot save the VPN
configuration. If I do add a passphrase it is stored under /etc/ with
only root permissions rw permissions as  'protection'. As far as I
remember,I was not offered the option to store to keyring when I set it
up - nor would I want it to.

There seems to be an implicit requirement in the design, or belief in
the authors, that the password should be stored - I have no idea why
this should be. There is further the belief that storing it as plain-
text is as safe as it needs to be - perhaps if you're storing it in /etc
or in the users keyring that's true, but there is life beyond them..
which is just as well given their limitations.

It used to be possible to create configurations without
passwords/passphrases, which lead to a prompt for credentials when
making a connection using such a configuration - this seems eminently
sensible, especially if the passphrase can be protected in memory or
otherwise safe-guarded (as done elsewhere). That this ability it no
longer there, it would seem to indicate that there was a conscious
decision to remove it - if so, can I ask what the thinking was behind it
?... if not, why was it then removed ?

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https://bugs.launchpad.net/bugs/1060907

Title:
  NetworkManager stores wifi passwords in plain text

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