Uh, I seem to recall this happening when I made a Larian account. What happens is you give them your email, they make your account, and email you a temporary password. The temp password is shown in plaintext, as the email shows. Once I saw the email, I logged in to finalize my account and change my password to something secure. It’s not the most modern process, but I wasn’t really that concerned either.
This was just recently since BG3 came out. Since I first saw this drama I was pretty sure OP was misrepresenting the situation.