[ygra]

I thought the same, although such a filter would be intended to help out unknowing users who might give their password to a stranger. People who use passphrases may know enough to not do that in the first place.

It could however in general have a problematic side-effect if the password is a common word that could be guessed from surrounding context when censored that way. Something I'd find a lot more likely here than passwords with spaces.