The following are limitations of the service password-encryption command:
* It uses the Vigenere cipher algorithm, which is simple in nature.
* A cryptographer can easily crack the algorithm in a few hours.
* The algorithm used by this command cannot protect the configuration files against detailed analysis by attackers.

The service password-encryption command does not use the MD5 algorithm for password hashing. The MD5 algorithm is used by the enable secret command.

The option stating that an observer cannot read the password when looking at the administrator's screen is incorrect because this is an advantage of the service password-encryption command.