The creds they store hold no value. These creds only give access to their system anyway. They store the email address either way so the situation is no better but less convenient.
They hold no value precisely because they don't store them and send you a magic link! If they stored a recycled password or its hash, then it would be valuable.
Not sure this is what I meant. Password is still stored, along will all the keypass stuff. If you have the option to login with the keypass... or the password - possibly sending you a link (or code) to the email.
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