Update: Tested it further.
Secure Data Input works in Edge and Firefox.
Secure Data Input does not work in Chrome or when I enable containers for Firefox.
So the issue is the containers and strict site isolation. It seems Kaspersky is unable to inject their code to protect the password fields which is actually good news. If my AV can't inject code there, then malware can't either. But I contacted Kaspersky technical support to confirm for sure that it's due to App Containers.
Google disagrees it's more secure, then again they control the browser market and can do whatever they want, there's no user choice...
Another reason I want more browsers outside the Chromium base, Google is currently affecting and controlling the web standards which is bad (forcing everyone to switch to Chromium), when IE had the majorly of the market Microsoft wasn't controlling the web standards (in fact IE had problems in a few websites).
What Google is doing to the Browser Market, is not much different to what NVidia is doing to the PC Gaming Market.