Massive security hole. I have a guest wifi set up in my house with a simplish password I can give out. Guest gets on external internet but can't see my internal private stuff. I can change my guest password without having to reenter my main 63 character password in all my other internal devices.
It's not a security hole, by definition. If you consider it a "security hole" because you cannot read the prompt on your other devices, then I would call that a user problem - certainly not a problem with this tech.
It's like blaming the door because you didn't look through the peephole before opening.
The prompt clearly states "Do you want to share the Wi-Fi password for {wifinetwork} with {user}?"
If you want people to access a GUEST network, have them CHOOSE that network.