It turns out that this is non-trivial - when censoring how do you indicate that something was changed, while keeping the output to a minimum? blank/"null" was rejected because it would mask other problems, and "* THIS FIELD HAS BEEN REDACTED DUE TO SENSITIVE INFORMATION *" was rejected for being "too long". Currently we use "XXXXX", which has caused some intern head scratching but is otherwise fine.
If it's just your authentication system hashes that are compromised, the damage can be contained.
So sure you don't want to log everything in Prod, but maybe you do in Dev. In that case, a bug would be to push the dev logging configuration to Prod. Oops.
If you have the clear text password at any point in your codebase, then there is no full-proof way to prevent to log it unintentionally as the result of a bug. You just have to be extra-careful ( code review, minimal amount code manipulating it, prod-like testing environment with log scanner, ...)