This is expected behavior now. By default connections are set as
"Available to all users"; which creates key files in /etc/NetworkManager
/system-connections, since Oneiric. If you uncheck "Available to all
users", connections will still be created as such, but further
information will be added to the keyfile to make sure it's marked as
belonging to your user, and the password will be saved in the keyring
instead,

With the files in /etc/NetworkManager/system-connections; permissions
are set so that only root can read the file.

Since this is expected behavior, I'll close this bug report as Invalid.

** Changed in: network-manager (Ubuntu)
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/959445

Title:
  NetworkManager saves wired passwords in cleartext in
  /etc/NetworkManager (instead of storing them in gnome-keyring)

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