ESPHome through 2026.7.0-dev discloses plaintext passwords via its web_server component. In WebServer::text_json_() (esphome/components/web_server/web_server.cpp), a text entity configured with mode: password (TEXT_MODE_PASSWORD) has its JSON "state" field correctly masked as "********", but the same serialization path unconditionally writes the raw password into the JSON "value" field via set_json_icon_state_value()/set_json_value(). Because web_server listens on port 80 with no authentication by default, any attacker on the local network can retrieve the plaintext password (e.g. WiFi credentials, API tokens) via GET /text/<entity_id> or the /events EventSource stream.

ESPHome through 2026.7.0-dev contains an operator-precedence bug in the cv.url() validator in esphome/config_validation.py: `if parsed.scheme and parsed.netloc or parsed.scheme == "file": return parsed.geturl()`. Because `and` binds tighter than `or`, any file: URI passes validation regardless of netloc. This validator gates the `url:` field of the external_components YAML directive's git source schema, which is passed to `git clone` (git supports file:// natively). A crafted `external_components` block with `url: "file:///attacker/repo"` clones an attacker-controlled local path, which is then added to Python's import machinery via ESPHome's component loader, executing arbitrary Python code when the YAML configuration is processed (e.g. via `esphome config`/`esphome run`).