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Happened to me just now. Perma-locked out of an account now that has no reset option because the AOL email address I used for it (I was young and naive) got closed for inactivity. Searched the keychain and only saw the old password. I'm never using this "feature" again.

I was thinking maybe it was saved, then I overwrote it by accident trying to log in with the old one? That's happened to me with Keychain passwords in general; idk why it doesn't save a history of all passwords instead of just the most recent one. There's a post from 2003 on Apple Communities complaining about it.
 
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December 2020. still happening. very annoying. The „suggest passwords” feature is often useless because often you can’t even write it down and there’s no guarantee that keychain will save it. When it does save it, it often saves it with the wrong email or username because it can’t tell what’s the username and what’s just a random other field.
 
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I use KeyChain for a few items. However, I only do that after I already have the password set up in a password manager. Years ago I got tired of Safari suggesting passwords and then keychain not saving them with the end result of getting locked out.
 
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2021 and this is still a feature of iCloud Keychain.

Just got permanently locked out of a freshly created outlook.com account because Safari iOS didn’t save the password it generated on logging out of the site 🤬
 
2021 and this is still a feature of iCloud Keychain.

Just got permanently locked out of a freshly created outlook.com account because Safari iOS didn’t save the password it generated on logging out of the site 🤬
Get a Password Manager and forget about Keychain. As you found out, it is buggy and will let you down when needed a lot of the time.
 
iOS: I have a new feature that could monitor your passwords with high risk and suggest a strong password that sync to different device. Will you change your password?
me: yep
iCloud Keychain: I have the correct log of last updated, but I didn’t really remember what is the strong password suggested by safari.
me:Thank u apple just ruins my life with perfect permanent account locked, really impressive technology.
This is based on a true story in the summer of 2021.
I still miss you, Steve.
 
Keychain, another one of Apple's great ideas, half baked into uselessness. Sad, but now totally expected from Apple. The attention to quality is horrible at Apple.
 
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