The post you have commented on is a link to a blog post that answers the question.
ellotheth
joined 1 year ago
I had a nice daliance in Palia and now I'm feverishly prepping for the next season of Destiny 2. I have until Tuesday to get my vault under control.
You're entering your password into your password manager, which is stored by a company or entity whose entire job is to keep it secure. You're not giving your password, in any form, to the website or service you're accessing. When the website gets compromised, your hashed password is not in a database waiting to be cracked. All the attacker gets is a public key they can't use for anything.