No, Google does not store or know any of your passwords. Since 2018, Google has overhauled and revamped the Chrome sync to work with high tier encryption that stores to your Google account instead of a simple device-to-device sync like many browsers use.
Google has no access to any of your passwords, it is secured in Chrome via device encryption. You can also add specific device ONLY (no cloud) encryption, which I link\explain at the end of this post. You can additionally store it in the cloud, but use your own "passphrase" to initiate syncing, if that works for you, too.
Around 2019, Google started to develop passwords.google.com as a main "hub" to access passwords stored via Google Account Syncing for all devices (iOS, Windows, Mac, ChromeOS, Android, Linux).
By the beginning of 2023, the Google Password Manager is fully launched for all users and combines your password storage from Chrome, Android, iOS, Linux, Mac, and Windows.
All your passwords are securely hashed and on-device except for if you use the "Password Checkup" feature to see if anything is in a databreach. However, Google never, ever has the ability to decrypt your full passwords.
You can read an explanation of that here on the Google Security blog:
Encryption can be 100% on-device for Google Passwords\syncing
How on-device encryption works
When on-device encryption is set up, your passwords can only be unlocked on your device using your Google password or the screen lock for an eligible device. With on-device encryption, no one besides you will be able to access your passwords.
To continue with On-Device encryption, all passkeys are synced via device, too, now that Apple, Microsoft, and Google have all rolled out Passkey support and increasing it starting in December 2022:
In October 2022, Google's security blog wrote a post to help explain
more about passkeys and passwords in the Password Manager