I suspect the reasoning for it was more along the lines of “if you’re pasting the password, that means you probably saved it in a text file on your desktop or something, and you shouldn’t do that so let’s stop you from doing it”. In reality, it probably didn’t work to make anyone store passwords more securely, and only made life unnecessarily harder for people with password managers
Immich might not hold up yet in every aspect to Google photos, but I was and am still blown away by how much better face detection and grouping works. I cannot believe how ridiculously bad that feature is in Google, you just have to pray that it works, and if it messes up, it’s extremely annoying to fix. In immich, it works exactly as you’d expect.