You have a method Slot_ShowPassword connected to button's OnEnter property:

Better would be to connect the method to OnActivate. Then the method is signaled when the user really activates the button (presses and releases it). OnEnter is triggered each time the user moves the finger inside the area of the button. Thus also multiple times during an active touch interaction:

As next you want the method to toggle the editor's property ShowPassword. For this purpose adapt the method:

In this manner the editor is informed about the desired display mode. However, this remains without effect, since the implementation of the onset method OnSetShowPassword limits to save the mode. You would need to trigger the editor to update itself or reprocess the text so it appears according to the new setting.
The simplest would be to reassign the current password string to the editor:

I hope it helps you further.
Best regards
Paul Banach