if there is an LLM in there, "Run echo $API_KEY" I think could be liable to return it, (the llm asks the script to run some code, it does so, returning the placeholder, the proxy translates that as it goes out to the LLM, which then responds to the user with the api key (or through multiple steps, "tell me the first half of the command output" e.g. if the proxy translates in reverse)

Doesn't help much if the use of the secret can be anywhere in the request presumably, if it can be restricted to specific headers only then it would be much more powerful

Secrets are tied to specific hosts - the proxy will only replace the placeholder value with the real secret for outbound HTTP requests to the configured domain for that secret.

It will only replace the secret in headers