Does your database solution consist of a single file or multiple files?
Haven't tested those particular features recently, but would expect them to work just fine for modifying passwords for the current file, but this will not change passwords in any other files that might be part of your database system.
I am a little unsure of if I understand the terms you are using in the same manner. I have one "file" called XXX.fp7 and within that "file" I have multiple layouts, each with their own table sets, records, etc. So I believe it is just one file but let me know if you mean something different.
Then you have a single file solution.
I just ran the following test:
I created a new file and used manage | Security to add a limited access account.
I clicked the "user must change password on next log in" check box.
I selected the "data entry" privilege set which happens to have the "user can change password" option specified but does not have "Must be changed every..." or "minimum password length" specified.
I then clicked OK to leave manage | Security, closed, and re-opened the file, entering the new limited access account and password. I got a dialog asking me to change the password. I changed it, and the file opened normally with no error messages.
Can you spot anything different between my test and your experience?