Does it matter tho. Like in general internet, once something is posted, it will not disappear with certainty. We can never be certain that there is a copy of the encrypted password on some log file when we have no visibility into that sytem. Since it is encrypted, it passes the regulation checks.
That is just a UI bug if passwords keep coming back in the cloud/you still see them. Unless there is a system in place that can transparently verify that indeed, the passwords are deleted, does it matter?