There's a difference between a password for LMS locally and a password for MySB. As I understood it, the change applies to MySB authentication only.
LMS up to 8.2.x would store your mysb credentials locally to sign in to mysb to use its features (music service integration, prefs syncing, whatever). With 8.3 LMS no longer keeps your mysb credentials, but only uses them to get a session token when authenticating in Settings/MySB.
So yes, this is not about the LMS password, but about how LMS interacts with MySB.
Most users coming from an older version of LMS will hopefully not see any change in behaviour, as 8.3 will use the credentials as stored to get the token, then delete the credentials. You can still go to Settings/MySB to sign out (delete the token) and sign in.
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