How is the password asked for when some application accesses a password-protected file?

If the Password property is set and the file is protected using the same password as specified in the Password property, then this password is used. In other cases (the password doesn't match or no password is given), the OnPasswordNeeded event is fired and it's the job of your control application to ask the user for a password or provide the password in another way. CBFS Storage doesn't show any password dialogs itself.

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