In which form Microsoft SQL password should be given when creating a user?
Yes, it is there correctly. You have run CREATE LOGIN correctly.

The number of stars in the SSMS box is just a mask and is unrelated to your actual password. SSMS doesn't know or try to read your password from the server

Note that SQL Server doesn't store your password so it can't relate to the **** in SSMS anyway. SQL Server hashes it into the password_hash column of sys.server_principals