Which IOS command causes locally configured passwords to be stored encrypted rather than as plain text in the device configuration?
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Correct answer: service password-encryption.
Why this is the answer
The service password-encryption command encrypts all plain-text passwords in the running and startup configurations, such as console, VTY, and enable passwords, using a weak, reversible encryption algorithm (Type 7). While not truly secure, it prevents casual observation of passwords. enable secret sets an encrypted password for privileged EXEC mode, overriding enable password if both are configured. This password is encrypted using a strong, one-way (MD5) algorithm (Type 5). enable password sets a plain-text password for privileged EXEC mode. username cisco password encrypt is not a valid Cisco IOS command for password encryption. The encrypt keyword is not used in this context for usernames.
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