Cannot change password for user

Steps to reproduce:

1) User sends a request to get password reset.
2) That succeeds, and receives an email msg with the new password.
3) That new password works, and signs in.
4) Goes to the Change Password window in Settings. Enters the password from the email msg, and the new password.

An error "Incorrect password" is displayed despite using a valid password.

Workaround is to have administrator change your password or to continue using the password sent by email in step 2.