@CuriosityUser, Thanks for posting in Q&A. For the affected device, I would like to confirm if it is windows device.
The error might be related to the MinDevicePasswordComplexCharacters setting. This setting requires a password that includes a mix of characters. Ensure that all local user accounts on the device meet the password complexity requirements. Sometimes, the policy might not be applied correctly to all accounts, leading to non-compliance
Please check the above information and if there's any update, feel free to let us know.
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