You can view drawings that contain xrefs to password-protected drawings.
If you open a password-protected drawing that contains xrefs, you must enter a password for any xref whose password is different from the current drawing's password.
You are only prompted to enter passwords that you have not yet entered. For example, if an xref shares a password with a drawing you have accessed in the current program session, such as an open drawing or an xref, you do not need to continue entering the same password.