It is working on my actual workstation:
$ lsb_release -a
No LSB modules are available.
Distributor ID: Ubuntu
Description:    Ubuntu 18.04 LTS (beaver-three-eyed-raven X92)
Release:        18.04
Codename:       bionic

$ apt-cache policy libsecret-tools
libsecret-tools:
  Installiert:           0.18.6-1
  Installationskandidat: 0.18.6-1
  Versionstabelle:
 *** 0.18.6-1 500
        500 http://at.archive.ubuntu.com/ubuntu bionic/universe amd64 Packages
        100 /var/lib/dpkg/status

But I have the same problem on my fresh installed workstation:
$ lsb_release -a
No LSB modules are available.
Distributor ID: Ubuntu
Description:    Ubuntu 20.04 LTS
Release:        20.04
Codename:       focal

$ apt-cache policy libsecret-tools
libsecret-tools:
  Installiert:           0.20.3-0ubuntu1
  Installationskandidat: 0.20.3-0ubuntu1
  Versionstabelle:
 *** 0.20.3-0ubuntu1 500
        500 http://at.archive.ubuntu.com/ubuntu focal-updates/universe amd64 
Packages
        100 /var/lib/dpkg/status
     0.20.2-1 500
        500 http://at.archive.ubuntu.com/ubuntu focal/universe amd64 Packages

So maybe it has to do with a (missing) setting or it is the result of an
incomplete setup?

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to libsecret in Ubuntu.
https://bugs.launchpad.net/bugs/1837318

Title:
  Cannot store password. Password prompt never ends

Status in libsecret package in Ubuntu:
  Confirmed

Bug description:
  Cannot store password using secret-tool.

  I do the following:

  $ secret-tool store --label='MyService' service myservice
  Password: 
  sf
  ^C

  The thing is when I hit ENTER and inserting the password, the password
  prompt never end. So I have to hit Ctrl+C to quit the program, and
  hence the password is not saved.

  Here are my system details:

  $ lsb_release -a
  No LSB modules are available.
  Distributor ID:       Ubuntu
  Description:  Ubuntu 18.04.2 LTS
  Release:      18.04
  Codename:     bionic

  $ apt-cache policy libsecret-tools
  libsecret-tools:
    Installed: 0.18.6-1
    Candidate: 0.18.6-1
    Version table:
   *** 0.18.6-1 500
          500 http://ru.archive.ubuntu.com/ubuntu bionic/universe amd64 Packages
          100 /var/lib/dpkg/status

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/libsecret/+bug/1837318/+subscriptions

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