If I'm doing my job correctly as an administrator and I need to reset someone else's password, I should never even be in the position where I need to communicate that password to them. Users who forget their password can use the "forget password" functionality which already works well in Seafile. The most often use-case in my experience where I would need to reset a user's password is when I need to log in as that user myself to troubleshoot issues or transfer documents after a staff transition. Other use cases would be when the user is physically present and I can have them type their own password into my computer, say if I'm helping set up Seafile for them and guiding them through the process of using it, in-person.
As an administrator, it is my responsibility to never see anyone's personal password. Not even temporary passwords, because many users won't change them unless forced to. This is good security practice. People's passwords are their personal property. Especially since many people re-use passwords (unfortunately), our technologies should help to facilitate password privacy.
So if when I reset a user's password in Seafile, or when I create a new user and specify a password, Seafile should not send any notification that includes the password in email. If for some strange reason I do need to communicate this password to the user, then I can choose a secure method of doing so (e.g. in-person or through encrypted email). Not cleartext email -- it's like writing it on a postcard!
It has honestly been years since I've interacted with a web application that sends passwords in cleartext. This practice was common a decade ago, but people have been catching on. It's big a security risk. None of the other web applications I use do it.
I've worked around this issue in Seafile by disabling outbound email while creating new users. For each user I create, I set a strong random password (which I immediately discard). Then I inform users to go to the site and click the "forgot password" link. This works fine, but I wish I didn't have to disable and re-enable email delivery.