I've managed to reproduce what I believe is the issue you're experiencing.
Please check whether the SetPasswordTo step is set to SimulateRealUser=fasle (screenshot 1). If it is, set it to "true" and try rerunning the test. When I tried it with SimulateRealUser=false it set the correct password but the expected action didn't occur. What is most likely happening is the app is wired to the keypress events as user types into the input field. These events don't get fired when it's set False.We'll do a direct set test property on the input field, bypassing the keypress event handler. Basically this is expected behavior.
Please check this and let me know how it goes.
the Telerik team
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