It's a real system dialog popped by the OS when the install script requests superuser privileges. It's not fake, and the password goes to the OS, not the script.
Thanks for clearing that up, though I must say they (Zoom) bring this upon themselves by having such a poorly worded dialog.
"Maybe try to read the blog post" can be easily replaced with a less patronizing and just as informative "It's in this blog post".
You have good points to make, they don't need the vitriol to be taken.
I was clearly also making a meta-comment about Twitter misinformation, so the patronizing part was inevitable.