When configuring vpopmail for our purposes we use (now) the configuration option:Quoting Aki Tuomi <aki.tuomi@open-xchange.com>:
On 03.10.2018 23:30, Eric Broch wrote:
Prefix your passwords in vpopmail with {SCHEME} (like, {CRYPT})Hello list,
I run Dovecot with the vpopmail driver and have found that it
authenticates against the clear text password in the vpopmail
database. Is there a configuration option either at compile time, link
time, or a setting in one of the configuration files that tells the
program to authenticate against the hash instead of the clear text?
Aki
Or use SQL - then you don't have to munge any of your tools.
password_query =
SELECT CONCAT(pw_name, '@', pw_domain) AS user, pw_passwd AS password, pw_dir as userdb_home, 89 as userdb_uid, 89 as userdb_gid
FROM vpopmail WHERE pw_name = '%n' AND pw_domain = '%d' AND !(pw_gid & 8) AND !(pw_gid & 2) AND ('%r'!='<webserverip>' or !(pw_gid & 4))
pw_gid refers to the the binary vpopmail flags for disable POP, IMAP, Webmail.
Rick
 --disable-many-domains     Creates a table for each virtual domain instead of storing all users in a single table.
                            Only valid for MySQL and PostgreSQL
This disallows (I think) the use Dovecot MySQL configuration file as every user is stored in a domain table of the form 'mydomain_tld'.
So, we're limited to these configurations (no dovecot-mysql.conf.ext) :
passdb {
  args = cache_key=%u webmail=127.0.0.1
  driver = vpopmail
}
userdb {
  args = cache_key=%u quota_template=quota_rule=*:backend=%q
  driver = vpopmail
}
If there is a clear text password (pw_clear_passwd) present it seems that Dovecot will use that instead of using the hash (pw_passwd).
It seems that in the code 'passdb-vpopmail.c' (below) that if the clear password (pw_clear_passwd) is present Dovecot skips the hashed password (pw_passwd), and we want authentication against the hashed password.   
<snippet>
        if (vpopmail_is_disabled(auth_request, vpw)) {
                auth_request_log_info(auth_request, AUTH_SUBSYS_DB,
                                      "%s disabled in vpopmail for this user",
                                      auth_request->service);
                password = NULL;
                *result_r = PASSDB_RESULT_USER_DISABLED;
        } else {
                if (vpw->pw_clear_passwd != NULL &&
                    *vpw->pw_clear_passwd != '\0') {
                        password = t_strdup_noconst(vpw->pw_clear_passwd);
                        *cleartext = TRUE;
                } else if (!*cleartext)
                        password = t_strdup_noconst(vpw->pw_passwd);
                else
                        password = NULL;
                *result_r = password != NULL ? PASSDB_RESULT_OK :
                        PASSDB_RESULT_SCHEME_NOT_AVAILABLE;
        }
</snippet>
Looking for an option to make dovecot use hashed password instead of clear text. 
Hope this makes sense.
-EricB
    -- Eric Broch White Horse Technical Consulting (WHTC)