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Do you go into the file, look up the website/account and then copy the password to paste it into the password field on the website - every time?

I don't think most people are willing to do this. I know I'm not.

Nope. I just click "remember password" in my browser after the first time.

At least for most sites. For banks and really important stuff I usually do memorize the password myself or copy it from the encrypted file.