That password is incorrect. Make sure you’re using the password for your Microsoft account
Well if you face this issue, here are a few random thoughts that come to my mind.
1] Check if your password is correct
It goes, without saying that you must first check if your password is indeed correct and then enter it carefully. Make sure that your Caps Lock is not On. You have to also remember that Windows 11/10 will sync computer settings, app purchases, etc across all systems that are using the same Microsoft Account. So if you changed your password using one computer, make sure you use the new password on your other computers too. Read: The user name or password is incorrect.
2] Check keyboard multiple language support
You might want to also check if your keyboard has been configured to support multiple languages and check if you are using the correct language. You can check its settings in the taskbar.
3] Rest your password
The error message offers a suggestion that you rest your password. So reset your Microsoft Account password at account.live.com and once you have reset it, use it to sign in. If you have reset the password online, use the new password on your Windows 10/8 PC. Reset your password to one which is less than 15 characters long. and see if it works. Read: What is the maximum length of the password in Windows.
4] Check if your Microsoft Account is compromised
If you think your Microsoft Account may have been compromised, then you might want to initiate steps to recover a hacked Microsoft Account. If you think it has been blocked by Microsoft, initiate the procedure to recover a blocked or suspended Outlook or Microsoft account.
5] Undertake password recovery
If nothing works, then you initiate steps for password recovery. These posts on Windows Password Recovery and how to recover from lost Windows passwords natively will help you recover lost, forgotten Windows passwords. Try some freeware Password Recovery tool like Ophcrack, Cain & Abel Recover my Password Home Free or Offline NT Password & Registry Editor.
6] Contact Microsoft Support
If this doesn’t help, then you may have a problem. Contact Microsoft Support and see if they have a solution. If not, then reinstalling Windows 10 may be the only option you may have. To prevent this from happening, you should set a PIN as an extra measure. So if you cannot log in with your Microsoft account password, you will be able to sign in using a PIN. See this post if you receive Your device is offline message during sign-in.