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It doesn't. I can access my passwords locally.

FF extension lets me fill in my passwords. I am not brave enough to trigger a sync tho.

Don't trigger a sync, my account logged out automatically, now I cannot access to the local copy because the identity service is offline.

I've just logged in on my Android phone and can see all my user creds.

I can access my passwords and sync with their server.

Accessible on iOS mobile.