Hello, @X-Box-11-2021,
Welcome to the Microsoft Q&A platform!
Based on your description, I understand that you want to know if “User is required to change their password when they first sign in” on the Reset Password screen is optional or mandatory.
After testing, “User is required to change their password when they first sign in” is grayed out and cannot be unchecked on M365, whether you create a new user or reset a user's password. This is definitely an update made by Microsoft to keep its users safe.
If you want the user to keep the initially set password, you just need to use PowerShell according to my testing process.
- I reset a user’s password in M365 and when logging into the account for the first time I am asked to change the password.
- I used the following command in PowerShell to disable forced password changes.
- When I tried to log into the account again for the first time, it logged in successfully straight away and didn't ask me to reset my password.
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Thank you for your support and understanding.
Best Wishes,
Alex Zhang