Being able to reset password from the Password Manager self service site using in Forgot my password as many times as I want? Password Manager seems to be ignoring the password history policy.
Being able to change an account password through Forgot my password many times in the self service site is caused by the background user for Password Manager being a domain admin which does not have the password policy imitation.
To have Password Manager adhere to the password history policy you need to configure it to enforce password history:
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