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I thought this changelog in their latest release was curious. Someone had suggested that we switch to argon2 as well for Cloudron some time back, so I decided to take a quick look.
Apparently, the issue is that it consume too much memory and does not work well on low end VPS. See:
https://github.com/go-gitea/gitea/issues/13718
https://github.com/go-gitea/gitea/issues/13706
https://github.com/go-gitea/gitea/pull/14675
