The upsd.users template checks each user option type and if it's a non-string iterable, it creates a multi-line repeat of the option. If a user password is encrypted with ansible vault, it is iterable, but not type string, therefore causing the password to be split out into many "password=" lines with each containing a single character. This is because the type of the password string is AnsibleVaultEncryptedUnicode, not string.

My proposed fix is to test if option name is password and always treat that as a single string since upsd.users does not support multiple passwords for a user anyway. Anything given to the template as a password key should be a single string.

If that solution is amenable, I can have a PR ready in a few minutes.