Compromising the hash and salt, since they must be stored close together, makes it possible to identify if the salted hash is a password in a corpus of previously compromised passwords. An attacker can do Hash(PW, Salt) for all PW in a list of leaked/cracked plaintext passwords. If they've guessed your password and it's shared across multiple services, lateral compromise. Salting only prevents the rainbow table attacks, where an attacker precomputes all possible hash values for a known keyspace (like, say, 8 alphanumeric length passwords) and just look up for a match. Encryption is concerning because it necessitates the ability to decrypt since they're often inverse operations of each other, and presumably there's a shared key stored somewhere to do the comparison, which means it's likely trivial to recover the password compared to hash cracking and undermines any strength or complexity benefits. This also likely points to other bad behaviors utilizing this "feature", such as helpfully emailing you your plaintext password when you forget it.