General consensus on twit is in D&D 5e it does not. To create holy water, a cleric or paladin spend 1 hour, 25 sp of silver, and a 1 st level spell slot to make a flask of 1 lb of water, holy water. This will only harm fiends and undead with 2d6 radiant damage.

as a note, Sacred Flame is a cantrip with no limit on casting and does 1d6 radiant damage Dex save.

the advantage is anyone can throw the flask as an improvised weapon and no save.

In Pathfinder 2e it is a vial and can only be made in a temple of a Good god, at 3 gp a vial, does 1d6 good damage, thrown 20', when combined with Holy Cascade (4th lv spell) causes the vial to burst 20' doing 3d6 good damage.