[Rephrased and slimmed down as recommended]:
Apple suggests a method to avoid saving passwords in iCloud backup by not creating an iCloud Security Code when KeyChain is enabled:

I'm wondering if there is a method to keep the passwords from propagating to other devices (as the previous article suggests it does) by, for instance, disabling KeyChain altogether. Would this keep passwords only on the device where they are set?

[Correction]: Apple says KeyChain is not stored in iCloud backup, just in the iCloud "live" data, so I've taken that bit out but the question stands...

  • Possible duplicate of How secure are iCloud backups? – Tetsujin Sep 16 '16 at 10:36
  • Would you mind if I tried to edit this down to one question? The edit starts done a good path, but a lot of text needs to be removed to avoid closure as too-broad as well. – bmike Sep 16 '16 at 11:36
  • bmike, Tetsujin, I don't see how the question is too broad or even unclear. what I'm asking is simply how does iCloud backup handle passwords... – Paolo Sep 16 '16 at 15:13

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