The administrative password is hashed using a comparatively weak, fast algorithm for the credential store backing one authentication path, and the file containing that hash is written with permissions allowing it to be read by any local user. This is inconsistent with a separate, stronger hashing algorithm used for the same password on another authentication path. A party able to read this file, including a local user or a party with access to a configuration backup, could feasibly recover the underlying password through offline computation, compromising the administrative credential across every path that accepts it.
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