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This is obviously not a bug.

In addition, for backwards compatibility reasons, when stdout is not a tty and secure password
generation mode has not been requested, pwgen will generate less secure passwords, as if the
-0A options had been passed to it on the command line. This can be overriden using the -nc
options. In the future, the behavior when stdout is a tty may change, so shell scripts using
pwgen should explicitly specify the -nc or -0A options. The latter is not recommended for
security reasons, since such passwords are far too easy to guess.