However, BleepingComputer noted that the feature does not seem to work when pasting passwords into certain third-party applications, such as Notepad2 and Notepad++, which are commonly used for credential insertion.
Additionally, the warning does not apply when using Windows Hello, Microsoft’s passwordless login feature, which utilizes biometrics or a PIN for access. As a password is required for login to Windows, it is stored in the system memory and referenced against pasted text to trigger the warning.