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Backup encryption is not using a key derivation function #817
This seriously reduces the encryption security as it makes the actual keyspace quite tiny. I haven't verified this, but I suspect passwords will silently be truncated to 31 characters in case they are longer.
I guess one question is how to keep compatibility with older backups. In all cases, I guess trying twice, with derived key and then with the raw password would work.
I've pointed this issue to a friend with proper experience in implemeting crypto algorithm whose reaction was the following: