It does not import passwords.
Here’s what it pulls from the user field. You can have a look a the code here. Even if you are not a programmer, you might be able to glean what is imported by looking at the names of the fields. For example:
"SELECT user_id id, username, email, custom_title title, register_date created_at,
last_activity last_visit_time, user_group_id, is_moderator, is_admin, is_staff
lets you see what gets pulled out of the XenForo database.
You might check out this thread, which describes a migrate-password plugin and how to write (or modify) an importer to migrate the passwords.
If you’d like someone to modify the XenFro importer, you can make an offer in the marketplace.