Hi there,
I think Microsoft Learn are quite clear
https://learn.microsoft.com/en-us/sql/relational-databases/security/password-policy?view=sql-server-ver15
"Password Complexity
Password complexity policies are designed to deter brute force attacks by increasing the number of possible passwords. When password complexity policy is enforced, new passwords must meet the following guidelines:"
So, for existing SQL logins it does not matter.
Only if you set a new password.
Regarding the policy enforcment:
Policy Enforcement
The enforcement of password policy can be configured separately for each SQL Server login. Use ALTER LOGIN (Transact-SQL) to configure the password policy options of a SQL Server login. The following rules apply to the configuration of password policy enforcement:
When CHECK_POLICY is changed to ON, the following behaviors occur:
CHECK_EXPIRATION is also set to ON unless it is explicitly set to OFF.
The password history is initialized with the value of the current password hash.
So, once you activate the policy and renew a password you cannot use the recent one immediatly.