Thanks for reporting! The message is indeed a little confusing. My understanding is that Chrome means to say: "If you want, consider using p.g.c," and then p.g.c says: "If you want to use me, set up sync without custom passphrase."

@sabineb -- we currently show the "Access your passwords from any device at passwords.google.com" message to everybody, independent of sync settings. Has that been the plan?

If yes, please close as Wontfix.
If no, please assign back to me and I'll take care of the code changes.

Thanks for the feedback. I understand the potential confusion, but the user could also have a second Google Account which they could then sign in with to p.g.c. We also show the note to users who are only saving passwords locally on that Chrome instance, but also here, maybe they do have a Google Account with saved passwords. And as vabr says, it also serves an educational value, and users can learn that such a site exists and they can start using it, if they wish by syncing passwords without a custom passphrase.