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When I type in a password in Terminal, it sometimes displays a key icon on top of the cursor. I thought that that meant that there was an integration with the KeyChain, but I don't seem to be able to find anything to corroborate that. What does this icon mean? Is it just an indication that something is a password? I see the icon when I type read -s ASDF as well, leading me to think it just indicates a "hidden" input.

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It means that what you're about to type won't be printed out to the terminal — it's hidden input. It's not making any reference to Keychain or other security features.

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