Does the Chef bash resource create history entries? I know that using a password in the command line is a bad idea because bash commands can be recorded in history.

If I run a command in the chef bash resource though, when I look up the history I don't see any entries.

Does this mean that the Chef bash resource does not record it's history? Is it safe to use a password in the Chef bash resource?
In this case, the best way would be to use chef data bags which is specifically known for this.
A great documentation is given at https://docs.chef.io/data_bags.html

Also, As Roland pointed above in the comment, make sure to use sensitive true in your bash resource to avoid any such information printed on screen or going to the logs.