avast is compiling a list of my accounts and passwords?

[RejZoR]

It simply checks if multiple entries have the same password (or the same password hash). If they do, you'll be notified about it.

[REDACTED]

Just this alone makes me want to switch AV.

[.: Mac :.]

Just this alone makes me want to switch AV.

Likely its comparing the hashes of the stored passwords. if two hashes match then it knows you have a duplicate, without actually reading the password.

[stibi]

If someone compares password hashes he doesn't know the password.
No trouble with that function. 

[RejZoR]

If someone compares password hashes he doesn't know the password.
No trouble with that function. 

Even if they compare passwords directly, it's done locally on your computer only. As far as I know avast! caches passwords locally, remote server is only for transfer between clients. Or am I wrong here and it's like LastPass where you can force it to fetch every request from server and nothing is stored locally?

[Eddy]

Well, there is avast passwords synchronization where the passwords are stored in the cloud (If I understood it correctly).
But as they are encrypted, avast can't see them.