Did you try passwd? sudo passwd (username) it said my password was bad, but it didn't stop me.
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I've mentioned I have already tried passwd. It complains over the length, in the end claims it was changed, but when I try authenticate something it says my new password isn't correct and old one is still the active one. I don't get it why installer can override it without any complaining, but anything after it's impossible to do it, even through Terminal.
I gotta be honest, I think that's a genuine bug. If passwd says it was changed, it should be changed. I tested on my 24.04 system and it worked correctly, I don't have any 25.04 systems to test.
You rebooted after changing it just in case right?
You could try sudo passwd username
. If you're using it as a remote system via ssh, I'd strongly recommend to use key-based with instead. It's both easier and more secure.
~~I've never tried to set a password that short, but I would start with passwd on the command line.~~
Looks like an update to minlen in /etc/security/pwquality.conf may solve it.
I would also look into Auto Login, as well.
Edit: And if it's a remote system, I would definitely set up a password-less SSH key, instead, of course.