Major password managers can leak logins in clickjacking attacks
bleepingcomputer.com
bleepingcomputer.com
For example, say a site asked for your name and then displayed it. If the site allowed you to say that your name was "<script>console.log('XSS');</script>", and it didn't use HTML entities to encode the problematic characters, then the script would actually run on the page.
A malicious site might be able to abuse that functionality. If they convince you to click on a specially crafted link or button that sends a request to the other site, the malicious site might be able to run a script in the context of the other site that you didn't intend for it to run. That would then be a successful XSS attack, and is the kind of attack that's being mentioned here.
In this case, the attack sounds like it would leak the password that your password manager might autofill.