The device uses a weak hashing alghorithm to create the password hash. Hence, a matching password can be easily calculated by an attacker. This impacts the security and the integrity of the device.
Workaround:
The product uses an algorithm that produces a digest (output value) that does not meet security expectations for a hash function that allows an adversary to reasonably determine the original input (preimage attack), find another input that can produce the same hash (2nd preimage attack), or find multiple inputs that evaluate to the same hash (birthday attack).