[Notre1]

Being accessible to the G Suite administrator is understandable, but this is saying that anyone with an account on the school's G Suite plan could see the passwords for any other user.

This has to be something where the admins changed some default setting to change the default security on everything in G Suite, so that all other school accounts could have access to it.

Maybe someone intended to set it up so that all google sheets and docs were shared among everyone on the plan, but didn't realize the change they made applied to other things that got synced to G Suite, like Chrome sync passwords?

[crottypeter]

From my reading of it, they are saying that all passwords saved in the browser (potentially all users of the home PC or mobile phone) get associated with the google account but not that all users of the school system can see each others passwords.