I think when this issue is discussed it’s too black and white with no nuance given for support trade-offs. Yes storing passwords in plain-text is less secure but we make similar trade-offs all the time. LastPass’s enterprise offering gives your admins the ability to decrypt your password vault in the event you lose you password effectively breaking E2E, iMessage backs up your messages to iCloud in plain-text, WhatsApp silently rotates keys, SMS recovery very often breaks 2FA, DNSimple will store your private certs if you ask. Security and usability are always a balance.

If you say that “basically everyone should never store plaintext passwords” then I will 100% agree with you but there are cases where the trade-off in usability can be worth it for very non-technical users. We as technologists must every single day store sensitive data about or on behalf of our users in plain-text for them to actually be able to use our services. If you can do that then you can secure passwords as well.