There is a policy in new sync, where Passwords sync is disabled when Master 
password is set. I think this policy should be changed as many new Trojans 
specifically targeting browser based stored passwords. When master password is 
set, Passwords cannot be accessed. Private key(master password) lies with the 
user is a better way out. 
In my view of solution, As when sync should be needed, a prompt can be asked 
the master password in order to sync password as most probably in old sync 
Operation and user always have control what to syn or not.
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