ORA-01031: insufficient privileges, cannot login as any user
Based on your comments, I have to assume that you are new to Oracle Database.

alter system set processes = 1 ...

It takes lots of processes to run an Oracle Database.
I very rarely hear of anyone reducing this parameter - usually we're having to ramp it up to cope with increasing workload.

orapwd file=filename password=password entries=100

The Oracle Password File controls who can log into the database using Operating System authentication rather than a local, database password.
It should have as few entries in it as possible (I don't think I've ever exceeded five) and then only those that *administer&quot; the database and are trusted to know what they're doing.

Also tried editting /u01/app/oracle/product/11.2.0/xe/dbs/spfileXE.ora file

No, no, no.  Just ...   No.
You should consider most, if not all, of the files used / managed by Oracle Database to be in a proprietary format that you absolutely must not try to &quot;edit&quot;.
This is Oracle database, not Microsoft's &quot;ODBC Text&quot; Driver.
The PFile is one of the few a text files that you can edit but their use is exceptional these days - most database instances run from an SPFile - intended for situations like this where you have to &quot;fix&quot; things on the fly.