All the popular password managers on the market advertise that they have AES-256 grade security. In a nutshell, the user has the master key and the password manager has the cipher-text. So the password manager cannot read any of the user data.
How do password managers have the feature to share passwords between friends and family?
Since password managers only have the cipher-text, when sharing with another person it should have the other person's master key for it to create a new cipher-text (which can be decrypted with the other person’s master key).
The above is achievable either by sharing the data as a plain text or maybe having a temporary sharing key. Even if they have either of the solutions, then editing shouldn't work.
Apps like Dashlane allow sharing with editable options. How is it possible to do that without knowing both parties master key? Are they somehow saving my key without my knowledge?