This issue can be resolved by opening Configure Password Generation Policies and hitting ?Reset?.
To reset the password policy:
- Launch the D&C console
- Right click on Policy and Automation Management > Configure Password Generation Policies > Password Settings.
- Then Hit the Rest button.
This issue is caused when entries in the varset for the password policy are missing (MaxLowerChars, MaxPasswordLength, MaxSameCharRepeat, and MaxSpecial). The result is the client ends up stuck in a loop trying to generate a password that will never match the policy values.