The configuration has been restored back to using the built-in password manager so it can access the passwords which were already there. Everyone will be able to use all the passwords they had before this change.
Unfortunately, this issue was not reported while the new Vanadium release was in the Alpha and Beta channels of the app repository. We got feedback from multiple people that it was working well, and it moved along to the Stable channel. We do not have nearly enough people helping with Alpha and Beta testing for Vanadium and the other apps in our app repository. There are a lot of people helping with the OS, not enough, but far more than the number of people helping test the app releases. Issues like this reaching the Stable channel can be avoided if there are more people helping to test the releases in Alpha and Beta.