Update snowflake-setup.md (#4680)

## What are you changing in this pull request and why?
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https://dbt-labs.slack.com/archives/C04KKUHLT32/p1702917286747549
dbt-labs/dbt-cloud#9675
Passphrase should be optional and are not required in the frontend (or
in profiles since dbt 0.16.0), but we were requiring them when
generating profiles. Updating the docs to say only provide when
necessry.

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website/docs/docs/cloud/connect-data-platform/connect-snowflake.md

@@ -42,10 +42,12 @@ alter user jsmith set rsa_public_key='MIIBIjANBgkqh...';
 ```
 
 2. Finally, set the **Private Key** and **Private Key Passphrase** fields in the **Credentials** page to finish configuring dbt Cloud to authenticate with Snowflake using a key pair.
-
-   **Note:** At this time ONLY Encrypted Private Keys are supported by dbt Cloud, and the keys must be of size 4096 or smaller.
 
-3. To successfully fill in the Private Key field, you **must** include commented lines when you add the passphrase. Leaving the **Private Key Passphrase** field empty will return an error.  If you're receiving a `Could not deserialize key data` or `JWT token` error, refer to [Troubleshooting](#troubleshooting) for more info. 
+**Note:** Unencrypted private keys are permitted. Use a passphrase only if needed.
+As of dbt version 1.5.0, you can use a `private_key` string in place of `private_key_path`. This `private_key` string can be either Base64-encoded DER format for the key bytes or plain-text PEM format. For more details on key generation, refer to the [Snowflake documentation](https://community.snowflake.com/s/article/How-to-configure-Snowflake-key-pair-authentication-fields-in-dbt-connection).
+
+
+4. To successfully fill in the Private Key field, you _must_ include commented lines. If you receive a `Could not deserialize key data` or `JWT token` error, refer to [Troubleshooting](#troubleshooting) for more info. 
 
 **Example:**
 

website/docs/docs/core/connect-data-platform/snowflake-setup.md

@@ -98,7 +98,8 @@ Along with adding the `authenticator` parameter, be sure to run `alter account s
 
 ### Key Pair Authentication
 
-To use key pair authentication, omit a `password` and instead provide a `private_key_path` and, optionally, a `private_key_passphrase` in your target. **Note:** Versions of dbt before 0.16.0 required that private keys were encrypted and a `private_key_passphrase` was provided. This behavior was changed in dbt v0.16.0.
+To use key pair authentication, skip the `password` and provide a `private_key_path`. If needed, you can also add a `private_key_passphrase`. 
+**Note**: Unencrypted private keys are accepted, so add a passphrase only if necessary.
 
 Starting from [dbt v1.5.0](/docs/dbt-versions/core), you have the option to use a `private_key` string instead of a `private_key_path`. The `private_key` string should be in either Base64-encoded DER format, representing the key bytes, or a plain-text PEM format. Refer to [Snowflake documentation](https://docs.snowflake.com/developer-guide/python-connector/python-connector-example#using-key-pair-authentication-key-pair-rotation) for more info on how they generate the key.