During installation, I unchecked both password options and wonder why Password protection appears to have installed.
see attached.
Why it installed when you do a custom installation (?) and you unchecked it is weird as it should act in the same way as other components that you don't want.
It isn't running as your images show. e.g. when you visit a site that you would have to enter your email and password, avast isn't completing it (or is it).
What it is doing is allowing you to change your mind, Avast are good (NOT) at that. I don't see it on my installation in the same way that you do as it is still shown as a paid product in Avast Free, even thought it is/was meant to be included. That said the Avast Passwords has been effectively abandoned to new installations, but remains supported for older installations that used it.
I have never opted to use the avast password function as I'm happy with what I use in Firefox as that synchronises across systems I have firefox installed. Without any of the faffing around seen in the forums.