User can not reset his password

Overview: related with procedure of new user creation. Actually this process can't be finished because application returns in GUI error "Sorry, the information entered does not match our records".  "undle.ea74f516699a8bfa2655.js:731 POST https://folio-snapshot-okapi.dev.folio.org/bl-users/password-reset/reset 500" presented in Chrome devtools. Sometime there is another issue with 404 response code after opening the link to password reset. 

See screenshot with error details from mod-password-validator logs and image with 404 error in attach.

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Steps to Reproduce:

1. Log into some FOLIO environment as administrator
2. Go to Users
3. Actions->New
4. Specify last name,  username and valid email address
5. Patron group = stuff
6. Set status as Active
7. Save 
8. Reopen user record
9. Click to "Send reset password email"
10. Go through link into new modal window
11. In case without 404 error - try to save new password

Expected Results:

Password changing should work

Actual Results:

See errors variants in attached screenshots
Additional Information:
URL: https://folio-testing.dev.folio.org/

Already discussed with Oleksandr Dekin and psmagin . 

*!!!!404 error reproduced in https://bugfest-kiwi.folio.ebsco.com/!!!*
Interested parties: