The following error will appear at the top of the Accounts screen (Configuration | Account Management | Accounts) when trying to put in a new password. In the example below, there is a space between New and Ye@r24.
The password contains invalid characters

Additionally, the error can be seen in a web browser console trace (i.e., F12) while attempting to reset the password. The error can be seen in the Response tab:

Note that the ErrorCode is pwd_basic_policy_wrong_chars confirming the password policy being used is Basic.
As seen above, the Basic Password Policy is being used which doesn't allow characters, such as spaces.
Configure an Advanced Password Policy in the Admin Console | Policy Management | Password Policy.

Note: If the Password Policy option is not seen in the console, it's because Single Sign-On (SSO) is currently configured. To view the option and configure the advanced password policy, temporarily disable SSO, configure the policy, and then reconfigure SSO.
Note: Ensure all SSO settings are recorded and the certificate is still available before performing these steps.