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TL;DR:
This post has been reported for misinformation.
I agree due to how its phrased by OP, but its not completely off base in that HIBP is used, but it is a severe misunderstanding of how. So I'm going to leave it up for awareness, while adding some notes and a few quick links here.
A quick quote from HA:
In short - HomeAssistant has never shared your passwords anywhere. HomeAssistant shares a part of a hash. In no way, shape, or form does this expose your passwords/secrets.