This seems like someone learned about key derivation functions and applied it to passwords. So with this system, it's stateless and no passwords are stored (encrypted or not). You need 4 things to generate passwords:
- Your full name
- Spectre secret
- Site Domain
- Master password
This seems counter intuitive to the stateless nature, since at least one (the spectre secret) will need to be stored somewhere. For UX the full name probably would also be stored, and the site domain can be gotten via some API on password use. This leaves the master password as the only portion not stored, and on "unlocking" the database it would probably be stored on the users device for a period of time.
This also ignores some of the requirements of websites needing passwords (some support all characters, some only a-z0-9_, etc etc). If supported, this metadata would also need to be stored somewhere. The cons of not being able to change passwords is also a huge issue, as passwords should be changed often, or replaced with keys (which you also replace often!).
For attackers, this seems not much different than a database file. In most cases, they'll already know two of the 4 (site domain and full name, especially in corporate environments). This leaves only the spectre secret and the master password doing the heavy lifting of security. This sounds a lot like a traditional password manager, where you have a master password, a database file, and an optional key file.
So the process to attack a traditional database system is to acquire the needed information (database file, master password/key file) and lookup the password (site domain/description). The process to attack spectre is to acquire the needed information (full name, secret, master password) and lookup the password (site domain/description). These have the same challenges of acquiring/brute forcing the master password and key file, and are essentially the same in the eyes of an attacker.
Overall I think passkey's will replace passwords, or something along that line. Keys have been used for a long time in security sensitive areas, can be swapped out easily and provide much more protection than a password when large enough.