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How do password managers and encrypted containers differ in how they handle data in encrypted and decrypted state?

Do password managers typically store data in decrypted state only in memory, while containers store data on disk in decrypted state? Can you point me to any good writeup on how these 2?

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    The Apple File System Reference has a pretty detailed chapter on encryption (starting on page 135). I don’t know where you got the idea from that the APFS stores plaintext copies of encrypted data. This would be absurd, because it would obviously defeat the purpose of encryption.
    – Ja1024
    Commented Sep 1 at 18:29

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