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I use a large assortment of software, each requiring it's own password. Some of these applications remove the password after a failed login attempt, where others leave it populated.

Does it improve security, or is it more of a user interface choice?

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This wouldn't improve security, this is entirely a user experience decision.

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    And regarding UX it's actually quite annoying. I often know that "if I have a typo, it's most likely the last character", then the program deletes the whole input. :( – Dodekeract Jul 27 '16 at 21:32

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