Great question.
First, if the user has admin access to the server then you don't need to worry about password sniffing. They could just change the passwords, or extract out the hashes for the existing passwords and use something like hashcat to convert them back to plain text.
Password sniffing only lets you get one password at a time as users connect. Doing the whole password database gives you everyones password
The RADIUS device (MX, AP, whatever) merely passes on the password in whatever form the client presented it in. Because of this, the entire client authentication scheme in RADIUS is often independent of the devices doing the authentication (client and eventual authentication server).
In the case of client VPN, the client supplies the password using PAP, which is plain text. This is easy to sniff in Wireshark.
WiFi can use a number of schemes with PEAP being the most popular. PEAP wraps the authentication exchange in TLS, so the entire conversation is encrypted. This appears encrypted in Wireshark.