diff --git a/apps/files_sharing/src/views/SharingDetailsTab.spec.ts b/apps/files_sharing/src/views/SharingDetailsTab.spec.ts
new file mode 100644
index 0000000000000..07aacb2e36510
--- /dev/null
+++ b/apps/files_sharing/src/views/SharingDetailsTab.spec.ts
@@ -0,0 +1,331 @@
+/**
+ * SPDX-FileCopyrightText: 2026 Nextcloud GmbH and Nextcloud contributors
+ * SPDX-License-Identifier: AGPL-3.0-or-later
+ */
+
+import { beforeEach, describe, expect, it, vi } from 'vitest'
+
+vi.mock('../services/ConfigService.ts', () => ({
+	default: vi.fn().mockImplementation(() => ({
+		enableLinkPasswordByDefault: false,
+		enforcePasswordForPublicLink: false,
+		isPublicUploadEnabled: true,
+		isDefaultExpireDateEnabled: false,
+		isDefaultInternalExpireDateEnabled: false,
+		isDefaultRemoteExpireDateEnabled: false,
+		defaultExpirationDate: null,
+		defaultInternalExpirationDate: null,
+		defaultRemoteExpirationDateString: null,
+		isResharingAllowed: true,
+		excludeReshareFromEdit: false,
+		showFederatedSharesAsInternal: false,
+		defaultPermissions: 31,
+	})),
+}))
+
+vi.mock('../utils/GeneratePassword.ts', () => ({
+	default: vi.fn().mockResolvedValue('generated-password-123'),
+}))
+
+describe('SharingDetailsTab - Password State Management Logic', () => {
+	describe('isPasswordProtected getter logic', () => {
+		it('returns true when passwordProtectedState is explicitly true', () => {
+			const passwordProtectedState: boolean | undefined = true
+			const enforcePasswordForPublicLink = false
+			const newPassword: string | undefined = undefined
+			const password: string | undefined = undefined
+
+			const isPasswordProtected = (() => {
+				if (enforcePasswordForPublicLink) {
+					return true
+				}
+				if (passwordProtectedState !== undefined) {
+					return passwordProtectedState
+				}
+				return typeof newPassword === 'string'
+					|| typeof password === 'string'
+			})()
+
+			expect(isPasswordProtected).toBe(true)
+		})
+
+		it('returns false when passwordProtectedState is explicitly false', () => {
+			const passwordProtectedState: boolean | undefined = false
+			const enforcePasswordForPublicLink = false
+			const newPassword: string | undefined = 'some-password'
+			const password: string | undefined = undefined
+
+			const isPasswordProtected = (() => {
+				if (enforcePasswordForPublicLink) {
+					return true
+				}
+				if (passwordProtectedState !== undefined) {
+					return passwordProtectedState
+				}
+				return typeof newPassword === 'string'
+					|| typeof password === 'string'
+			})()
+
+			expect(isPasswordProtected).toBe(false)
+		})
+
+		it('returns true when enforcePasswordForPublicLink is true regardless of other state', () => {
+			const passwordProtectedState: boolean | undefined = false
+			const enforcePasswordForPublicLink = true
+			const newPassword: string | undefined = undefined
+			const password: string | undefined = undefined
+
+			const isPasswordProtected = (() => {
+				if (enforcePasswordForPublicLink) {
+					return true
+				}
+				if (passwordProtectedState !== undefined) {
+					return passwordProtectedState
+				}
+				return typeof newPassword === 'string'
+					|| typeof password === 'string'
+			})()
+
+			expect(isPasswordProtected).toBe(true)
+		})
+
+		it('falls back to inferring from password when passwordProtectedState is undefined', () => {
+			const passwordProtectedState: boolean | undefined = undefined
+			const enforcePasswordForPublicLink = false
+			const newPassword: string | undefined = 'some-password'
+			const password: string | undefined = undefined
+
+			const isPasswordProtected = (() => {
+				if (enforcePasswordForPublicLink) {
+					return true
+				}
+				if (passwordProtectedState !== undefined) {
+					return passwordProtectedState
+				}
+				return typeof newPassword === 'string'
+					|| typeof password === 'string'
+			})()
+
+			expect(isPasswordProtected).toBe(true)
+		})
+
+		it('returns false when passwordProtectedState is undefined and no passwords exist', () => {
+			const passwordProtectedState: boolean | undefined = undefined
+			const enforcePasswordForPublicLink = false
+			const newPassword: string | undefined = undefined
+			const password: string | undefined = undefined
+
+			const isPasswordProtected = (() => {
+				if (enforcePasswordForPublicLink) {
+					return true
+				}
+				if (passwordProtectedState !== undefined) {
+					return passwordProtectedState
+				}
+				return typeof newPassword === 'string'
+					|| typeof password === 'string'
+			})()
+
+			expect(isPasswordProtected).toBe(false)
+		})
+	})
+
+	describe('initializeAttributes sets passwordProtectedState', () => {
+		it('should set passwordProtectedState to true when enableLinkPasswordByDefault is true', async () => {
+			const config = {
+				enableLinkPasswordByDefault: true,
+				enforcePasswordForPublicLink: false,
+			}
+			const isNewShare = true
+			const isPublicShare = true
+			let passwordProtectedState: boolean | undefined
+
+			if (isNewShare) {
+				if ((config.enableLinkPasswordByDefault || config.enforcePasswordForPublicLink) && isPublicShare) {
+					passwordProtectedState = true
+				}
+			}
+
+			expect(passwordProtectedState).toBe(true)
+		})
+
+		it('should set passwordProtectedState to true when isPasswordEnforced is true', async () => {
+			const config = {
+				enableLinkPasswordByDefault: false,
+				enforcePasswordForPublicLink: true,
+			}
+			const isNewShare = true
+			const isPublicShare = true
+			let passwordProtectedState: boolean | undefined
+
+			if (isNewShare) {
+				if ((config.enableLinkPasswordByDefault || config.enforcePasswordForPublicLink) && isPublicShare) {
+					passwordProtectedState = true
+				}
+			}
+
+			expect(passwordProtectedState).toBe(true)
+		})
+
+		it('should not set passwordProtectedState for non-public shares', async () => {
+			const config = {
+				enableLinkPasswordByDefault: true,
+				enforcePasswordForPublicLink: false,
+			}
+			const isNewShare = true
+			const isPublicShare = false
+			let passwordProtectedState: boolean | undefined
+
+			if (isNewShare) {
+				if ((config.enableLinkPasswordByDefault || config.enforcePasswordForPublicLink) && isPublicShare) {
+					passwordProtectedState = true
+				}
+			}
+
+			expect(passwordProtectedState).toBe(undefined)
+		})
+
+		it('should not set passwordProtectedState for existing shares', async () => {
+			const config = {
+				enableLinkPasswordByDefault: true,
+				enforcePasswordForPublicLink: false,
+			}
+			const isNewShare = false
+			const isPublicShare = true
+			let passwordProtectedState: boolean | undefined
+
+			if (isNewShare) {
+				if ((config.enableLinkPasswordByDefault || config.enforcePasswordForPublicLink) && isPublicShare) {
+					passwordProtectedState = true
+				}
+			}
+
+			expect(passwordProtectedState).toBe(undefined)
+		})
+	})
+
+	describe('saveShare validation blocks empty password', () => {
+		const isValidShareAttribute = (attr: unknown) => {
+			return typeof attr === 'string' && attr.length > 0
+		}
+
+		it('should set passwordError when isPasswordProtected but newPassword is empty for new share', () => {
+			const isPasswordProtected = true
+			const isNewShare = true
+			const newPassword = ''
+			let passwordError = false
+
+			if (isPasswordProtected) {
+				if (isNewShare && !isValidShareAttribute(newPassword)) {
+					passwordError = true
+				}
+			}
+
+			expect(passwordError).toBe(true)
+		})
+
+		it('should set passwordError when isPasswordProtected but newPassword is undefined for new share', () => {
+			const isPasswordProtected = true
+			const isNewShare = true
+			const newPassword = undefined
+			let passwordError = false
+
+			if (isPasswordProtected) {
+				if (isNewShare && !isValidShareAttribute(newPassword)) {
+					passwordError = true
+				}
+			}
+
+			expect(passwordError).toBe(true)
+		})
+
+		it('should not set passwordError when password is valid for new share', () => {
+			const isPasswordProtected = true
+			const isNewShare = true
+			const newPassword = 'valid-password-123'
+			let passwordError = false
+
+			if (isPasswordProtected) {
+				if (isNewShare && !isValidShareAttribute(newPassword)) {
+					passwordError = true
+				}
+			}
+
+			expect(passwordError).toBe(false)
+		})
+
+		it('should not set passwordError when isPasswordProtected is false', () => {
+			const isPasswordProtected = false
+			const isNewShare = true
+			const newPassword = ''
+			let passwordError = false
+
+			if (isPasswordProtected) {
+				if (isNewShare && !isValidShareAttribute(newPassword)) {
+					passwordError = true
+				}
+			}
+
+			expect(passwordError).toBe(false)
+		})
+
+		it('should not validate password for existing shares', () => {
+			const isPasswordProtected = true
+			const isNewShare = false
+			const newPassword = ''
+			let passwordError = false
+
+			if (isPasswordProtected) {
+				if (isNewShare && !isValidShareAttribute(newPassword)) {
+					passwordError = true
+				}
+			}
+
+			expect(passwordError).toBe(false)
+		})
+	})
+
+	describe('checkbox persistence after clearing password', () => {
+		it('checkbox remains checked when passwordProtectedState is explicitly true even if password is cleared', () => {
+			let passwordProtectedState: boolean | undefined = true
+			const enforcePasswordForPublicLink = false
+			let newPassword: string | undefined = 'initial-password'
+
+			newPassword = ''
+
+			const isPasswordProtected = (() => {
+				if (enforcePasswordForPublicLink) {
+					return true
+				}
+				if (passwordProtectedState !== undefined) {
+					return passwordProtectedState
+				}
+				return typeof newPassword === 'string'
+					|| false
+			})()
+
+			expect(isPasswordProtected).toBe(true)
+		})
+
+		it('checkbox unchecks incorrectly if passwordProtectedState was never set (bug scenario)', () => {
+			let passwordProtectedState: boolean | undefined = undefined
+			const enforcePasswordForPublicLink = false
+			let newPassword: string | undefined = 'initial-password'
+
+			newPassword = undefined
+
+			const isPasswordProtected = (() => {
+				if (enforcePasswordForPublicLink) {
+					return true
+				}
+				if (passwordProtectedState !== undefined) {
+					return passwordProtectedState
+				}
+				return typeof newPassword === 'string'
+					|| false
+			})()
+
+			expect(isPasswordProtected).toBe(false)
+		})
+	})
+})
diff --git a/apps/files_sharing/src/views/SharingDetailsTab.vue b/apps/files_sharing/src/views/SharingDetailsTab.vue
index 9830fe88a6aca..e9668d78a01f2 100644
--- a/apps/files_sharing/src/views/SharingDetailsTab.vue
+++ b/apps/files_sharing/src/views/SharingDetailsTab.vue
@@ -974,6 +974,7 @@ export default {
 		async initializeAttributes() {
 			if (this.isNewShare) {
 				if ((this.config.enableLinkPasswordByDefault || this.isPasswordEnforced) && this.isPublicShare) {
+					this.passwordProtectedState = true
 					this.$set(this.share, 'newPassword', await GeneratePassword(true))
 					this.advancedSectionAccordionExpanded = true
 				}
@@ -1087,8 +1088,9 @@ export default {
 				this.share.note = ''
 			}
 			if (this.isPasswordProtected) {
-				if (this.isPasswordEnforced && this.isNewShare && !this.isValidShareAttribute(this.share.newPassword)) {
+				if (this.isNewShare && !this.isValidShareAttribute(this.share.newPassword)) {
 					this.passwordError = true
+					return
 				}
 			} else {
 				this.share.password = ''
diff --git a/build/frontend-legacy/vitest.config.mts b/build/frontend-legacy/vitest.config.mts
index 066a5594c7424..5a480c80fdc5c 100644
--- a/build/frontend-legacy/vitest.config.mts
+++ b/build/frontend-legacy/vitest.config.mts
@@ -48,6 +48,7 @@ export default defineConfig({
 	},
 	test: {
 		include: ['./{apps,core}/**/*.{test,spec}.?(c|m)[jt]s?(x)'],
+		passWithNoTests: true,
 		environment: 'jsdom',
 		environmentOptions: {
 			jsdom: {
diff --git a/build/frontend/vitest.config.ts b/build/frontend/vitest.config.ts
index a7078a2356f17..09b3fe709f8d8 100644
--- a/build/frontend/vitest.config.ts
+++ b/build/frontend/vitest.config.ts
@@ -38,6 +38,7 @@ export default defineConfig({
 	},
 	test: {
 		include: ['apps/**/*.{test,spec}.?(c|m)[jt]s?(x)'],
+		passWithNoTests: true,
 		env: {
 			LANG: 'en_US',
 			TZ: 'UTC',