The Specified Network Password is Not Correct Error Message When Changing Passwords

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Symptom:
When you try to change a password, you receive the following error in the Windows Event logs:
“The specified network password is not correct”. The user receives an error as well, but their password still gets changed.

Cause:
Microsoft introduced this problem in Windows Update:
MS16-014 https://support.microsoft.com/en-us/kb/3134228 . This can be associated with the following KB updates depending on your operating system:

3135173
3135174
3126593
3126041
3126587
3126434
3134228

Solution:
There were various workarounds that we had until Microsoft fixed their own problem in:

https://support.microsoft.com/en-us/kb/3139921
for 2012R2
or
https://support.microsoft.com/en-us/kb/3140410
for 2008R2

If you have a different operating system, the articles describe the equivalent updates.

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