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I have not run into this issue, so I am just guessing here. But it sounds to me like you might be running into a password or account policy here. For example, if you have a minimum password length and your new password does not meet that requirement, I can see you getting error 1327, which translates to both logon failure and user account restriction. I would examine your password policies and see if the new password you are using meets the appropriate criteria. You can also try to change the password using a different means to see if other methods accept the password, as well.
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