Getting 'specified network password is not correct' when trying to change password
I have resolved it. Below is what I did and what fixed it.


Ran "net user /domain " and made sure the account was still active and not locked or expired. (The account was active and healthy)
Restarted the workstation. (The only thing it proved was the password was correct and I managed to log on successfully)
Waited for couple of hours. (Sometimes you just have to be patient.)


After doing all of the above, the issue still remained. In the end, it was the action below that resolved it:

I went to the Services mmc snap-in under Control Panel -> Administrative Tools instead of SQL Server Configuration Manager. Changed the password there and started the SQL Server service successfully. Repeated the steps for SQL Agent.

It worked but I am still puzzled why it worked in Services but not in SQL Server Configuration Manager. Active Directory vs WMI? Anyone?