When attempting to change a user's password using the vSphere Client, the operation fails and an error is displayed.
Specifically, one of the following error messages is shown, depending on the method used for the password change:
VMware vCenter Server
This issue occurs because the target user account belongs to an external Identity Source (such as Active Directory or OpenLDAP) rather than the vCenter Single Sign-On (SSO) local domain (e.g., vsphere.local).
This behavior is expected.
The vSphere Client is designed only to manage passwords for users residing in the vCenter Single Sign-On local domain. It does not have the capability to modify passwords for users belonging to external directory services.
To change the password for a user belonging to an external domain (e.g., Active Directory), you must not use the vSphere Client.
Instead, use the native password management methods provided by the external directory service (e.g., Active Directory Users and Computers, or the operating system's password change utility).