Of course, it is a design choice. That does not make it any less of a dead wrong choice. And, no, the danger is not just in an already compromised result. Those passwords would be accessible to anyone compromising the device. Full-stop.
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Researcher Finds Microsoft Edge Stored Passwords Load in Plaintext — PCMag
Microsoft defends it as a 'design choice,' saying the threat requires the PC to be compromised. But the researcher who flagged the issue says other Chromium-based browsers sidestep the problem.