When the iDRAC virtual console window is opened, Caps Lock is automatically activated without any visual indication. Any keystrokes entered through the console window are then transmitted with inverted case. Because ESXi passwords are case-sensitive, a password typed normally through the iDRAC console will not match the stored password, causing authentication to fail every time.
This behavior occurs even if the Caps Lock indicator on the local keyboard appears to be off, because the state is set inside the iDRAC session rather than on the physical keyboard.
Workaround
If you also want to prevent this from occurring on future console sessions: