Contrary to older IOS switches NX-OS does not use plain text passwords in the config anymore. Once you entered a password it will be immediately hashed and only the hash is stored in the running config:
username USER password Passw0rd!
show run | inc username
username USER password 5 $1$Eih6SrvJ$D.2H2X/YtEYQMj8Ucy3f41 role network-operator
Now imagine you would want to copy this config file to a different switch, including the login credentials. In this case you copy the above line including the "5" and the other switch now understands that "$1$Ei..." is a hash value and not a clear tex