Important to note that not all password managers are equal. Using Apple’s built-in password manager is more secure because it is inherently tied to your biometrics and authentication is hardware-based, i.e Secure Enclave. This is categorically different from web services like Bitwarden or 1Password authenticated by login email and 2FA codes. Even if someone got into your Apple ID they still would be unable to view or…
iCloud syncs passwords between your devices. If someone can login via your Apple ID, which means that the person knows username/password, and can also convince you to provide them with 2FA code that gets shown on your existing device, they can just add a new device to your account, and get passwords to sync to it.
This is a special requirement for Passwords that does not apply to other encrypted data in your Apple account.