Is it possible for a Firefox extension to read preferences or data stored by other Firefox extensions?
For example, could Firefox extension A, read any preferences or data stored by Firefox extension B?
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Absolutely. Legacy Firefox extensions can do anything. They can access each others' preferences, snoop your Google password, read or write arbitrary files belonging to other extensions, read or write arbitrary files belonging to other software... anything.
Is it possible? Hell yeah!
Going by the fact that there have been various malware in the past that could extract sensitive data from a browsers extensions.
Is it probable? Probably not.
If there was an issue, it'll be patched real fast. Browsers are a very important application in most peoples lives. Browser security is taken very seriously. This is why you need to keep updating your browser with the latest patches etc. Also, if you're that worried, you might want to use your browser in a different way - put it on a VM and don't do anything else on that VM except browsing the web. I wouldn't say that's 100% secure, as VM sandboxes have also been compromised in the past, but it's worth a shot if you really need the additional security.