Macbook password doesn't work on login screen but works in recover options

Question

Our M2 Macbook air password doesn't work from the login screen.

There is no option to reset it from the login window: https://support.apple.com/en-us/HT202860

Trying to look into options using the recovery mode (https://support.apple.com/en-us/HT212190) and I am prompted for the password and the password is accepted.

What is going on with this password? Why doesn't it work from the Login screen but it does work in recovery mode?

Note I'm trying to not have to reset the entire Macbook. It seems the password is good...

Answer 1

So after entering the password successfully in recovery options I decided to not rebuild the computer... restarted the MacBook and the password then worked from the Login screen! Makes no sense...