For this case I've also been on the phone with support for a while, friendly support asked me to additionally ask the developer community about this:
As a user I expect at no point to have any password characters revealed. Did anyone else notice this?
An exerpt of my Terminal:
Open Terminal.
Execute sudo du -hd 1
type wrong password, hit enter, immediately type again wrong password.
There should be a number of characters now between the prompt "Password" and "Sorry, try again" - which are potentially parts or even your whole password characters.
As a user I expect at no point to have any password characters revealed. Did anyone else notice this?
An exerpt of my Terminal:
$ sudo du -hd 1
Password:
asdasdasdasdasdsadadasdsaSorry, try again.
Password:
asdasdsadadsadsadasdsadSorry, try again.
Password:
adasdsadassudo: 3 incorrect password attempts