Looks like a fix has landed upstream. It was a bug in plymouth:
https://gitlab.freedesktop.org/plymouth/plymouth/merge_requests/2
** Package changed: mutter (Ubuntu) => plymouth (Ubuntu)
** Changed in: plymouth (Ubuntu)
Status: Confirmed => Triaged
** No longer affects: gnome-shell (Ubuntu)
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https://bugs.launchpad.net/bugs/1767918
Title:
Login password from GDM is shown in plain text on the VT1 console
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