Well, @Welshdog, I do not appreciate rogue code when it comes to password managers, for obvious reasons, that's all. I like this product for the features and value it offers, but yes, that rogue code (for whatever reason it exists) does give me a cause to be concerned. And the only reason I say this is that I have never encountered any app from any developer that caused this particular issue in my 15 years of using a Mac.
@Vinod Kumar thank you for your elaborate posts, I will read through them and respond further if the need arises. I have not been available and online a lot since I last posted. You responded just about a week ago, so I am glad I have not kept you waiting as much for a response. From what I gleaned as I skimmed over your posts, it seems you are confident that this will not be a privacy issue at any point in time, so that is good enough for me.
Further, since you are talking about system configurations, I am ready to provide any in-depth log and report I can, should you want. Do let me know what I can do in that regard, though I wonder what we might be able to achieve, as you suggest this is not something in your control. iCloud is not customised by me in any way, everything is set to whatever the defaults are, and, frankly, I am not even aware of iCloud backing up my system files on the Mac, let alone the ability to configure such backups at user's end. I always understood iCloud to backup only the iOS and iPadOS files.
The only other thing that comes to my mind is that since this issue is more in Apple's domain as you suggest, then shouldn't the developer company (Enpass) try and reach Apple and get them to fix this? It is possible that most users of your software will never even realise that rogue entry's existence, but when they do, they will unnecessarily panic, and they will only point at Enpass. Shouldn't Enpass work with Apple to have a fix for this, for Enpass's own short and long-term repute?