The password feature isn't a simple on/off option, If it's set all of your data files are encrypted using the provided password. If you forget or lose this password there is no way to recover the encrypted data files. When you set the password it asks you to enter the password twice.
The only way the password feature can be turned on is if someone at the computer set it. Unless you're experiencing corruption in your data files that is being interrupted as being password protected. We've never heard of this happening before.
I'm not quite sure why the uninstall would be failing.
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