Password fields were obfuscated as a security starting iOS 13.1. This made test automation impossible as users could not enter the password via sendKeys.
In order to work around this restriction, Sauce Labs instruments applications in such a way that basically converts password fields to clear text. This allows users to enter and also see the keys being passed in an otherwise obfuscated field.
Part of this also means that the show/hide (eye icon) does not adhere to the expected behavior since the field is no longer treated as a password field but instead as a text field following our instrumentation.