Hello Ashen Ranaweera
Welcome to Microsoft Q&A Platform, thanks for posting your query here.
The error message indicates that the password you provided does not meet the password policy requirements.
If you are sure that the password meets the requirements, you can try resetting the password using the VM access extensions.
Here is an example for resetting VMSS password using PowerShell:
$vmssName = "myvmss"
$vmssResourceGroup = "myvmssrg"
$publicConfig = @{"UserName" = "newuser"}
$privateConfig = @{"Password" = "********"}
$extName = "VMAccessAgent"
$publisher = "Microsoft.Compute"
$vmss = Get-AzVmss -ResourceGroupName $vmssResourceGroup -VMScaleSetName $vmssName
$vmss = Add-AzVmssExtension -VirtualMachineScaleSet $vmss -Name $extName -Publisher $publisher -Setting $publicConfig -ProtectedSetting $privateConfig -Type $extName -TypeHandlerVersion "2.0" -AutoUpgradeMinorVersion $true
Update-AzVmss -ResourceGroupName $vmssResourceGroup -Name $vmssName -VirtualMachineScaleSet $vmss
Here is an example for resetting VMSS password using CLI:
az vmss extension set --resource-group myResouceGroup --vmss-name myScaleSet --publisher Microsoft.OSTCExtensions --name VMAccessForLinux --version 1.5 --protected-settings "{'username': 'newUser', 'password': 'newPassword'}"
Hope this helps.
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