Not really, this document is clearly intended for a general public audience (They define the term "social engineering" after all). I don't think its surprising they didn't go into the details of which algorithms they use on old passwords
I think it most likely means, the passwords are hashed, and the hashes aren't available in this tool. There's undoubtedly other tools that allow people to view the hash, (Mysql command line client is a "tool" after all ;) Although I agree the statement is ambiguous enough, that it could mean things that aren't best practise.