It's to distinguish this behavior from password managers. Here, the message is sent to Microsoft in an encrypted form, but Microsoft can decrypt it to access t

It's to distinguish this behavior from password managers. Here, the message is sent to Microsoft in an encrypted form, but Microsoft can decrypt it to access the underlying password. For password managers, the remote server receives a password in an encrypted form, and cannot decrypt it to access the underlying password. It could have been phrased better, but the clear message is that Microsoft has pilfered access to unencrypted passwords, regardless of any transportation-level encryption.