Re: Why, what?
There was no logic to store the password but there was logic to store the hint, obviously. Unfortunately the UI (the app, not the underlying filesystem) stored the contents of the password input into the hint field.
The solution that Apple is now applying in the fix will be to test if the volume can be decrypted using the password hint. If it can, this user has suffered from the error and the fix will delete the contents of the hint field. If it can't, this user hasn't suffered and nothing needs to change. Quite a neat approach in the fix tbh.