When I try to have my console and vty passwords encrypted on routers, it stays unencrypted. This leads me to believe that I need to copy an existing encrypted password from another router. I have tried with password 0 <password> password 7 <password> but none of these options want to work. And I have tried on various routers.
Try using the command:
on your routers. This command encrypts all the passwords by default. You should have this on all your devices by default...Good Luck..