So if you use a common password it’s easier for someone to hack your account for instance if your password is password instead of/8)4&/‘hsujs23 than it will be easier. They can use a rainbow table which takes less computing power and time than a brute force attack. But you are mostly right about using different passwords. Having a password manager can be useful. But password are not a great source of protection for the attack you are describing
If the website gets hacked and they can get the unencrypted passwords, it’s not really relevant how strong the password is. Strong passwords keep people out using the “manual” way of breaking into your account, aka guessing your password. This can either be a brute force type attack or certain people that for whatever reason want to break into your account specifically
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