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Description of problem: 
On the graphical gnome-login screen, when entering the password, the option to disable "show text" in the password field cannot be turned off.  Customer requests disabling of "show text" to ensure masking of passwords to prevent "shoulder surfing".

Version-Release number of selected component (if applicable):
Tested on (.x86_64):
  Red Hat Enterprise Linux Server release 7.8 (Maipo)
  gnome-shell-3.28.3-24.el7
  gsettings-desktop-schemas-3.28.0-3.el7 
  kernel-3.10.0-1127.el7

How reproducible: 
Every graphical user login

Steps to Reproduce:
1. Try to set a password policy:
cat > /etc/dconf/db/local.d/00-password-policy << EOF
[org/gnome/desktop/lockdown]
disable-show-password=true
EOF

2. Try to set disable of showing password to true
cat > /etc/dconf/db/local.d/locks/00-disable-show-password << EOF
/org/gnome/desktop/lockdown/disable-show-password true
EOF

3. Update dconf
dconf update

4. Reboot

Actual results:  
During the graphical gnome-login screen, when entering the password, the option to disable "show text" in the password field cannot be turned off.

Expected results:  
Disable on "show text" option


Additional info:

So, the configuration you outlined should work.

Does:

# restorecon -R /etc/dconf

followed by a reboot, fix it?

Do you have a file named /etc/dconf/profile/gdm ?  If so, does removing it fix your problem? (back it up before removing it, please!)

Have you opened a customer portal ticket?

The needinfo request[s] on this closed bug have been removed as they have been unresolved for 500 days