If you sign in with a password (instead of using QR), it's encrypted the moment it's saved. After your first sign-in, Steam hands us a temporary access pass that we use instead - so the password itself isn't needed day-to-day, and it's never visible to anyone in plain text.
SteamBoost / Features / Encrypted Credentials
Encrypted Credentials
Your Steam password is encrypted the moment you save it.
Available on every plan.
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