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This is why I won't be using iCloud Keychain.

Depends how it is implemented.

LastPass say that all your details are encrypted client-side via your master password, so they cannot access anything of yours.

There's nothing to stop Apple doing the same - but I suspect they won't.

On the other hand, Apple might be rethinking that policy right now.

I hope they are, anyway.

I'm going to wait and see if it uses client-side encryption. If it does, it's probably safe to use.