Hashing uses the Web Crypto API built into your browser. The text never leaves the page, which means you can safely hash something sensitive — unlike most online hash tools, which post your input to a server.
This is the mistake worth naming plainly. A bare hash — SHA-256 included — is the wrong way to store passwords, because it is designed to be fast, and fast is exactly what an attacker with a stolen database wants. Modern hardware runs billions of SHA-256 operations per second.
Password storage needs a deliberately slow, salted key-derivation function: Argon2id, scrypt or bcrypt. If you are looking at an application that stores sha256(password), that is a finding, not a design.
Verifying a download matches what the publisher published. Detecting whether a file changed. Deduplicating content. Building content-addressed storage. In every case the property you want is that the same input always gives the same output, and a different input essentially never does.
If you are assessing where hashing is used across an application or environment, that is security auditing territory.
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