Ansible module with mysql_user fails to create new user, if option encrypted is set

With MySQL version 8.0, the ansible mysql module runs into an error while creating a new MySQL user with the option "encrypted: yes" (if the MySQL user does not exist yet).

The Bug appears to be in the 'user_add' function in file '/usr/lib/python3/dist-packages/ansible/modules/database/mysql/mysql_user.py' (see arrow below):

def user_add(cursor, user, host, host_all, password, encrypted, new_priv, check_mode):
    # we cannot create users without a proper hostname
    if host_all:
        return False

    if check_mode:
        return True

    if password and encrypted:
---> cursor.execute("CREATE USER %s@%s IDENTIFIED BY PASSWORD %s", (user, host, password)) <---
    elif password and not encrypted:
        cursor.execute("CREATE USER %s@%s IDENTIFIED BY %s", (user, host, password))
    else:
        cursor.execute("CREATE USER %s@%s", (user, host))
    if new_priv is not None:
        for db_table, priv in iteritems(new_priv):
            privileges_grant(cursor, user, host, db_table, priv)
    return True

Ansible translates this to and tries to execute the following MySQL command which fails (here the output from mysql after retrying):

  mysql> CREATE USER 'newuser'@'localhost' IDENTIFIED BY PASSWORD "*123456789012345678901234567890";
  ERROR 1064 (42000): You have an error in your SQL syntax; check the manual that corresponds to your MySQL server version for the right syntax to use near 'PASSWORD "*123456789012345678901234567890"' at line 1

The following MySQL command actually does what I am trying to accomplish:

  mysql> CREATE USER 'newuser'@'localhost' IDENTIFIED WITH mysql_native_password AS '*123456789012345678901234567890';
  Query OK, 0 rows affected (0.01 sec)

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ansible-playbook version: 2.9.9
python version = 3.8.6 (default, Jan 27 2021, 15:42:20) [GCC 10.2.0]