In Splunk DB Connect 1, I could create a database connection from conf file (database.conf) where I could provide a cleartext password and after deployment, Splunk would encrypt it. I tried to do the same with identities.conf on Splunk DB Connect 2.3.1 and it didn't encrypt the password and I'm getting error "Unable to decrypt password, please re-enter the password on identity".
Is it possible to manually or have Splunk to do the description when adding identities from conf file?
I don't have a solution for the conf files but you could use my solution for DB Connect V2 via REST API https://answers.splunk.com/answers/452618/how-do-i-use-the-restful-webservices-to-setup-new.html#ans...
Or DB Connect V3 via conf files https://answers.splunk.com/answers/516111/splunk-db-connect-v3-automated-programmatic-creati.html#an...
I would upgrade to DBConnect V3 and try again.