No, when Lockdown mode is enabled on the ESXi host, TPAM will not be able to change/manage any passwords. The below logs will be shown when manually using "Reset Password" on an managed account.
[DD/MM/YYYY HH:MM:SS] Gathering the change details for managed on ESXihost...
[DD/MM/YYYY HH:MM:SS] Setting the new password for managed on ESXihost (vsphere System) using funcacct...
[DD/MM/YYYY HH:MM:SS] Operation changepassword failed.
[DD/MM/YYYY HH:MM:SS] Error: Permission to perform this operation was denied.
[DD/MM/YYYY HH:MM:SS] An error occurred changing the password for managed on ESXihost.