Subversion not saving encrypted password after update of cygwin 32bit

[Todor Ivanov]

       Hello,

       We upgraded our cygwin 32 bit install on a Windows 2008 R2 server,
because we needed the latest python stuff and this also upgraded all core
packages, sshd (cygwin), subversion included. What changed is the svn auth
caching. As this is a remote machine, we login via ssh + key (passwordless)
to its sshd cygwin server and use svn commands from there. Now if we login
using ssh + key, the password does not get saved and asks every time.
However if we login via ssh + password the password is saved in an
encrypted way using windows-cryptoapi. We investigated a little bit and see
that profiles have different attributes when using a key and a password,
i.e:

With key:
uid=1002(ouruser) gid=513(None) groups=513(None),66048(LOCAL),66049(CONSOLE
LOGON),4(INTERACTIVE),15(This Organization),545(Users),11(Authenticated
Users),197624(bus-beta),197625(dev-beta),1010(HelpLibraryUpdaters),0(root),559(Performance
Log Users),555(Remote Desktop Users),405504(High Mandatory Level)

With password:
uid=1002(ouruser) gid=513(None) groups=513(None),114(Local account and
member of Administrators
group),197624(bus-beta),197625(dev-beta),1010(HelpLibraryUpdaters),0(root),559(Performance
Log Users),555(Remote Desktop
Users),545(Users),4(INTERACTIVE),66049(CONSOLE LOGON),11(Authenticated
Users),15(This Organization),113(Local
account),4095(CurrentSession),262154(NTLM Authentication),405504(High
Mandatory Level)

After the upgrade the following packages could not be downloaded from any
of the listed mirrors. I also googled and browsed the repositories, but
they seem to be missing and show in cygcheck as "Incomplete":

libpq
libppl-devel
libnetcdf6
libguile12
libbotan-devel

 Simple authentication works for ssh+key, but I really try to avoid this. I
also tried recreating the .subversion folder, which did not change
anything.  I did a strace and did not find any error stuff, so I don't know
how to proceed further. Your tips and guidelines are very welcome.

Kind regards,
Todor