Q1IM is able to set the initial password upon account creation because the field is empty. When you later attempt to update the password through Manager, it attempts to set a new password, rather than sending a command to update the existing one and this causes the error to be thrown.
This issue will be resolved in the next release of Quest One Identity Manager and a fix can be provided to correct the issue in the current version, if required. Please submit a service request to Support for more assistance.
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