Answer by MichelZ for Server 2012 Active Directory Password policy
The subdomain has it's own password policy, you need to change this as well. A password which always works for testing purposes is something like WeLcOmE123$!, try this. Also, windows can be bitchy...
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For our development environment, I have an AD domain intra.contoso.com on a Win 2008 R2 server, with mostly default settings set. The password policy prohibits the use of passwords with less than 5...
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