That's actually a very solid point. It's probably a trap of some sort where the author wants to make the article a bit more interesting for the reader which backfires. Both of your points are correct - the wording should be fixed and the general algorithm should be simplified, which I will do ASAP. Thanks for reading & the feedback!
Actually there's a small problem with the solution I suggested as well - technically two different passwords may end up with the same SHA1 hash result, so in the last step you should return a sum of them :)
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