Home Assistant's maintainer called a password scan 'won't fix', then apologized on Hacker News (github.com)
The check lives in the Supervisor, hashes values locally and sends only a 5-character SHA-1 prefix to HIBP. It has existed for years; a recent release merely made its warning visible, which is how a user noticed it.
The maintainer's apology didn't end the argument. Readers objected to the premise: a home automation hub that phones out, even with a prefix, is not what they installed it for.