I’ve not found a way, via iCloud web interface, of copying existing app-specific-passwords and reusing them when either having to reinstall the app they were created for when adding that same app to a new iOS or macOS device. 
It appears that once created and locked in the iCloud, it is not reusable.
What I am missing here and not understanding?
I could store these in password (Bitwarden) vault. That feels like a needless duplication. Yet a likely solution.
Is this a bug or a feature?
How do you overcome handling this anomaly, if indeed it is one?
There’s no benefit to reusing an application password. You should make a new one every time you can’t access or transfer the old one. Every several years you can clear out old ones on iCloud.com, if you want.
I’ve used app-specific passwords through both iCloud and Google. They both work in the way you describe above (show the password on creation and then never again). My assumption is that they do this by design and it is not a bug.
My only solution to knowing what the password was (if needing to reinstall an app) is the one you have mentioned in your original post. Copy the app-specific password into a password manager before adding it to the app. If I need to reinstall I can get to the password via the password manager.
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I make a separate document listing them. Copy them while they’re active and paste them twice, first in the document (then save the document!) and the second time in the target application.
Generally agree. The only reason to hang onto an app-specific password for reuse is if you have an incredibly stupid app that’s likely to forget or have some sort of other problem and demand that you re-enter it. Microsoft Outlook comes to mind.
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