service password-encryption will change any Type 0 passwords entered in the router configuration to Type 7 in an attempt to stop unauthorised users from being able to easily view the password.
This includes any passwords entered earlier in configuration, they will be converted to Type 7 passwords when service password-encryption is entered
Password encryption is applied to all Type 0 passwords, including authentication key passwords, console, AUX, VTY and BGP neighbour passwords.
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