You write “I prefer the V1 approach which allows for different local passwords“. I may have mentioned before in this thread, but I wrote a longer essay on this here: https://www.axcrypt.net/blog/use-of-different-passwords/ . I really think you should reconsider when you say “I want my different client files to have unique passwords“, but of course in the end – you decide! I can only advise. We’ll of course adapt to user demands, as long as it is not detrimental to overall security. We may indeed implement password based key sharing, if we can figure out a way to make it easy to use.