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I think that’s what most people want in a password manager. The only way to have a truly secure pw manager is to encrypt it and failsafe to delete. That way if your identity gets stolen or email compromised, it limits the damage.
Said another way: if a company offering a password manager can recover all your passwords with you just clicking “forgot password”, that means they can read your passwords in plain text (and so can hackers if the company gets hacked).