Open the PDF file using a compatible browser, enter the password, click on Print, and choose 'Save as PDF' as the destination. Save the file to remove the password.

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Pick Save as PDF to choose a filename and destination, and you can even add password protection to the document if you want to. There's PDF functionality built right into Finder as well.

Following this test-run, you can delete the PDF we just saved, and the option to save to Google Drive should appear in the drop-down "destination" menu from now on.