My POP3 server supports encrypted passwords but Thunderbird says it doesn't and wont' allow me to encrypt my password. Why? I want to encrypt it.
I received an e-mail from my webmail server saying that my password with Thunderbird is not secure. So I went to the settings and saw that it indeed wasn't. I changed the settings and suddenly was not receiving any e-mail. So I called my server and they said to change the settings to use an encrypted password because that's what they support. They are a POP3 server. However, when that option was put in, your message popped up that said the POP3 server does not seem to support encrypted passwords. It does! So why will Thunderbird not work when I put in that option? I don't want to have insecure e-mail.
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Maybe you could tell us who your provider is, and then someone can check what their POP server offers. There are various versions and variants of encryption; maybe they meant that you should use an encrypted connection. In my experience, encrypted passwords per se are quite rare.
If you were to set up a second instance of the account, I'd expect and hope that Thunderbird would find the best possible security available to you. Then you could use what you learned from this to adjust the existing account.