MacOS 10.12.6 Sierra keychain has stopped saving passwords, how to repair

I'm not sure how to prevent the creation of the credentials in the first place, but you can remove items from the Keychain using the security command, which is easily scriptable.

The command you want is security delete-internet-password -s server, where server is the hostname or address of the proxy server without the protocol (i.e. 192.168.0.1, not https://192.168.0.1). Alternatively you can use -l label to match the name of the keychain item, or various other search parameters, which you can find detailed on the man page.

You can have this command run at logout for each user by saving it as an executable script in a location readable by all users (make sure the file is executable for all users as well). Then run sudo defaults write com.apple.loginwindow LogoutHook /path/to/script.

How to manually view saved passwords and credit card numbers with iCloud Keychain

1. Launch the Settings app on your iPhone or iPad.
2. Tap on Safari.
3. Tap on Passwords & AutoFill under the General section.
4. Tap on either Saved Passwords or Saved Credit Cards.
5. Enter your 4-digit passcode if you are prompted to do so.
6. In this list, find the login you'd like to view the password for and tap on it.
7. Here you can see the login credentials for that specific account.

Source: How to view your saved passwords and credit card numbers with iCloud Keychain