Because WebDAV appears to be the only viable solution for remote documents access/editing for the moment and there is customer demand. WebDAV supports HTTP Basic and Digest auth. The latter requires us to store insecure hashes, because of protocol specifics.
Because we cannot change that nor remove WebDAV support, we will reduce the impact of a successful attack instead.
This is achieved by creating a separate strong password for Digest auth.
We achieve the “strong” characteristic through only allowing generation of passwords, based on UUIDs. This means when the hash is produced, it will also be stronger also, though not perfect.