Microsoft Auth saves passwords in wrong format (hex deci) irreversible

Question

After upgrading my iPhone from version 14 to 15, Microsoft Auth started saving passwords in a wrong format (hex dec). I had to restore my passwords from an old backup to retrieve them. However, my passwords are getting destroyed again due to this error. I have two iPhones, an iPad Air, and several PCs that use Microsoft as the primary password vault. Two of my devices (iPhone 13 and Surface Laptop) are managed through Microsoft IT. I suspect that there is a sync error on one device that is causing passwords to be saved in the wrong file format and syncing to all other devices. This issue is very frustrating, and I need help figuring out the root cause. Thank you.