Yes, it is solved by restarting the system OR restarting NetworkManager
& nm-applet.
How is it not a bug? There are checkboxes if you want to remember per
session and even if you don't use it, NM still remembers.
** Changed in: network-manager-vpnc (Ubuntu)
Status: Invalid => New
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NM 0.7 vpnc remembers passwords even though told not to
https://bugs.launchpad.net/bugs/293198
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