Looks like this is the default behaviour in IE developer tools. I tried to login in Google, Microsoft sites and it also shows the password in plain text.
I dont know if this is security issue in IE or not but this is how its behaving.
Steps to view your passwrod:
- Open Gmail or Live.com in IE9 (I tried in IE9)
- F12 (open Developer Tools) -> Go to Network tab
- Click Start Capturing button
- Enter username/password (you can enter anything to test)
- click Stop Capturing and then go to detailed view
- in grid click on POST row and Go to "Request Body" tab
- see the code with password as plain text at the last of _RequestVerificationToken......
If anyone finds any better solution, please let me know.