In the screenshot example you showed, there is an “eye” icon, which can be used to toggle the reveal password state. This seems obvious to people who work and dwell in the world of computers and technology. A lot of users don’t even know this option exists.
Being a UX designer is all about battling design from the user’s perspective. It boils down to specific use case and specific audience. Common patterns don’t always work for your audience.
Same with showing password by default, which, IMO, is a bad idea. It’s an anti pattern and should not be used.
Enjoyed the "Passwurdius Revelio!” 