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I'm not sure about filtering out, but they're stored encrypted in state.

If a resource doesn't mark things as sensitive correctly, you can use this for outputs: <https://www.pulumi.com/docs/concepts/options/additionalsecretoutputs/|https://www.pulumi.com/docs/concepts/options/additionalsecretoutputs/>

There's more details on marking inputs as secrets here: <https://www.pulumi.com/docs/concepts/secrets/|https://www.pulumi.com/docs/concepts/secrets/>