Centralized services are questionable for privacy in general. That’s especially true for a password manager, where if the service is compromised in a way that leaks your passwords then all of your accounts are compromised.

If you’re at all worried about potentially being profiled by governmental actors as a privacy concern, I’d keep as far away from hosted password managers and email as possible. There’s no such thing as a hosted service that doesn’t share information with the government on request and both of those services immediately give away the whole game if compromised.

It’s possible to provide free daycare for kids without mandating it.