Strange Setup Step - Sierra Upgrade

[ScottButler]

When I upgraded to macOS Sierra recently, after the usual steps like 'do you want to enable Siri' etc. I received an unusual prompt.

It said some information in iCloud was encrypted and asked me to enter my iPad password. Then after that things continued as normal with expected setup screens.

Any idea what this could have been and did anyone else see this?

 

[Shirasaki]

I have heard some pieces of information saying Apple changes the way they encrypt iCloud backup. This change requires user to enter some password to continue using iCloud backup. I don't have the full picture though.