You mean for Discord I assume? That is strange indeed - though of course Windows has always allowed apps to modify any kind of behavior they want (for better and for worse).
They might just truncate the password during login as well.
I was able to login to my online banking using only the first five digits of my password not more than 3 years ago.. They fixed it in the meantime but I'm still worried.
"SQLite is much faster than direct writes to disk on Windows when anti-virus protection is turned on. Since anti-virus software is and should be on by default in Windows, that means that SQLite is generally much faster than direct disk writes on Windows. "
This is a key point. Windows is starting up the anti-virus program and scanning every tiny file as it is written. This is less about NTFS being slow and more about anti-virus being considered a required overhead on Windows.
I find it hard to believe that all stores combined patch a single gigabyte in a week, let alone every store patching multiple gigabytes. The size of the stores and their patches are negligible compared to installing any modern game.