Yes, this would ruin the permissions of the files under /etc, which
would in turn destroy your operating system security. The trade-off
doesn't sound very good to me.
** Changed in: etckeeper (Ubuntu)
Status: New => Won't Fix
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Having more generous (default) permissions for /etc/.bzr seems rather
problematic, given the potentially secret files residing under /etc/.
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https://bugs.launchpad.net/