Hi Josh,
The lockout is coming from the Windows Account lockout policy. The quickest fix is to change that policy so users are never locked out after bad passwords.
On any affected PC, sign in with an administrator, press Win+R, type secpol.msc, then press Enter. Go to Security Settings > Account Policies > Account Lockout Policy. Open Account lockout threshold and set it to 0 invalid logon attempts. Click OK. Windows should mark the duration and reset-counter settings as Not Applicable. Close the console and restart the PC or run gpupdate /force in an elevated Command Prompt.
If the PC does not have Local Security Policy, open an elevated Command Prompt and run:
net accounts /lockoutthreshold:0
Then restart.
If you want a safer approach instead of fully disabling, leave a lockout in place but make it much less disruptive. Set Account lockout threshold to a higher number, for example 20. Set Reset account lockout counter after to 5 minutes, and set Account lockout duration to 5 minutes, so a student is never blocked for 2 hours.
For schools managing many devices, apply the same setting in a Group Policy that targets those PCs under Computer Configuration > Windows Settings > Security Settings > Account Policies > Account Lockout Policy.
One note: If students are signing in to Windows with school Entra ID accounts on Entra-joined devices, the lockout can be coming from Microsoft Entra Smart lockout, not the local policy. In that case you would adjust the Smart lockout threshold and duration in the Entra portal for your tenant. If that is your setup, tell me and I will map the exact clicks.