Clearly there are reasons to keep /etc/passwd in version control. Changes to /etc/passwd often need to be synchronized with changes to /etc/shadow.
For something like professionally administered servers accessible only via ssh asymmetric keys, /etc/shadow may not be considered so sensitive that it's worth the risk of having it be an exceptional cases in version control.
For something like professionally administered servers accessible only via ssh asymmetric keys, /etc/shadow may not be considered so sensitive that it's worth the risk of having it be an exceptional cases in version control.