Are passwords + server credential meanwhile protected?

Welcome to the forum @JP801

I believe Windows scrambles the DB unless you set –unencrypted-database on server start line.
On other OS, it seems possible but not likely, as most don’t ship a suitable version of SQLite per
Which tool can open encrypted DB

On a Windows service install, you also get protection from DB being in SYSTEM profile unles it’s
relocated to a better spot to keep Windows from wiping it into Windows.old on version upgrades.

It looks like on Linux, permissions allow only owner access. Of course, attacks could bypass this.