diff --git a/awx/api/serializers.py b/awx/api/serializers.py
index bd1f486dd8..c3c151e1d1 100644
--- a/awx/api/serializers.py
+++ b/awx/api/serializers.py
@@ -3750,7 +3750,11 @@ class LaunchConfigurationBaseSerializer(BaseSerializer):
 
         # Build unsaved version of this config, use it to detect prompts errors
         mock_obj = self._build_mock_obj(attrs)
-        accepted, rejected, errors = ujt._accept_or_ignore_job_kwargs(_exclude_errors=self.exclude_errors, **mock_obj.prompts_dict())
+        if set(list(ujt.get_ask_mapping().keys()) + ['extra_data']) & set(attrs.keys()):
+            accepted, rejected, errors = ujt._accept_or_ignore_job_kwargs(_exclude_errors=self.exclude_errors, **mock_obj.prompts_dict())
+        else:
+            # Only perform validation of prompts if prompts fields are provided
+            errors = {}
 
         # Remove all unprocessed $encrypted$ strings, indicating default usage
         if 'extra_data' in attrs and password_dict:
diff --git a/awx/main/tests/functional/api/test_schedules.py b/awx/main/tests/functional/api/test_schedules.py
index 9bd85b3c0e..abd17ead7d 100644
--- a/awx/main/tests/functional/api/test_schedules.py
+++ b/awx/main/tests/functional/api/test_schedules.py
@@ -105,6 +105,30 @@ def test_encrypted_survey_answer(post, patch, admin_user, project, inventory, su
     assert decrypt_value(get_encryption_key('value', pk=None), schedule.extra_data['var1']) == 'bar'
 
 
+@pytest.mark.django_db
+def test_survey_password_default(post, patch, admin_user, project, inventory, survey_spec_factory):
+    job_template = JobTemplate.objects.create(
+        name='test-jt',
+        project=project,
+        playbook='helloworld.yml',
+        inventory=inventory,
+        ask_variables_on_launch=False,
+        survey_enabled=True,
+        survey_spec=survey_spec_factory([{'variable': 'var1', 'question_name': 'Q1', 'type': 'password', 'required': True, 'default': 'foobar'}]),
+    )
+
+    # test removal of $encrypted$
+    url = reverse('api:job_template_schedules_list', kwargs={'pk': job_template.id})
+    r = post(url, {'name': 'test sch', 'rrule': RRULE_EXAMPLE, 'extra_data': '{"var1": "$encrypted$"}'}, admin_user, expect=201)
+    schedule = Schedule.objects.get(pk=r.data['id'])
+    assert schedule.extra_data == {}
+    assert schedule.enabled is True
+
+    # test an unrelated change
+    patch(schedule.get_absolute_url(), data={'enabled': False}, user=admin_user, expect=200)
+    patch(schedule.get_absolute_url(), data={'enabled': True}, user=admin_user, expect=200)
+
+
 @pytest.mark.django_db
 @pytest.mark.parametrize(
     'rrule, error',