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Except the confirm password field is in the same form so hasn't been submitted.

This very well could be the expected behavior to allow for the potential states of form entry and submission and the immense number of issues related to networking.

Whether this could be changed by a preference perhaps is definitely a possible avenue here, but if they want to have it this way so people are less likely to lose their password during sign-up then so be it.

Pick another password manager if you don't like it, but for the common user it's probably the best experience out of the box (even if I don't want it that way either)