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I can’t comment on the general trend, but this specific one seems a bit too circumstantial to be of use for a serious spying effort. You’d have to have the spyware running parallel to the apps usong passwords you want to steal in a specific way.
The risk exists, which is bad enough for stochastic reasons (eventually, someone will get lucky and manage to grab something sensitive, and since the potential damage from that is incalculable, the impact axis alone drives this into firm "you need to get that fix out asap), but probably irrelevant in terms of consistency, which would be what you’d need to actually monitor anyone.
If you manage to grab enough info to crack some financial access data, you can steal money. If you can take over some legit online account or obtain some email-password combo, you can sell it. But if you want to monitor what people are doing in otherwise private systems, you need some way to either check on demand or log their actions and periodically send them to your server.
It would be far more reliable to have injection backdoors to allow you access by virtue of forcing a credential check to come up valid than to hope for the lucky grab of credentials the user might change at an arbitrary moment in time.
You’ll have to be more precise on the definition of God. There are quite a lot of them.
The existence of an abstract concept is provable by thinking of it. If there exists an idea that you call God, then a God exists. However, that proves nothing about its properties beyond its mere existence as an idea, including whether it pertains to any real thing. Likewise, all attributes you ascribe to that idea become part of the idea, but do not automatically prove anything about reality.
Thus, the question whether there is an idea called God is trivially answered by asking it at all, but has little bearing on anything at all.
What makes ideas useful is that they group properties, and what makes them real is that there exists an actual thing having all those properties.
Thus, the question whether a real thing exists depends on the properties of that thing, so let’s tackle one:
Do I believe that there can be an omnipotent entity? No. The typical argument here is “Can God create a rock so heavy, They cannot lift it anymore?” Either answer contradicts the premise of omnipotence, unless that entity can create logical contradictions, in which case all argument and reasoning is moot anyway.
In particular, do I believe that some variation of the Abrahamic God exists? No, or at least none of those I’m aware of. That doesn’t mean I’m not open to being shown otherwise.
However, the idea of an omnipotent, omniscient and all-loving God runs decidedly counter to the existence of suffering, even if we ignore (or exclude) the contradiction about omnipotence.