Setting up a new email account on mail, the password is entered for connecting to the in

Assuming that in this day and age you want security.
Setting up a new email account on mail, the password is entered for connecting to the in & outgoing servers before SSL is set.  Before you can set SSL, mail connects to the servers so email password is transmitted unencrypted?
This seems a very obvious quirk/bug and something that I have always felt uncomfortable about.
Anyone else think this is not a good thing?

Actually it look like all apple devices have the same mail setup procedure, so are your email passwords all being sent over the network in plain text before you get the chance to set the SSL option?
Any security experts care to comment.

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