For some reason the password being generated is longer than the allotted space in lr_v32_users password field of 34 characters and the password is being truncated. Via phyMyAdmin increase the size of password varchar(34) to password varchar(100)
Or modify the admin/models/database_model.php and increase the size of the password field in
// Table schema for lr_xxx_users
$this->tables[$this->lr_xxx . 'users'] = "
CREATE TABLE IF NOT EXISTS " . $this->lr_xxx . "users (
id int(11) NOT NULL auto_increment,
role_id int(11) NOT NULL default '1',
username varchar(25) NOT NULL,
password varchar(100) NOT NULL,
email varchar(100) NOT NULL,
banned tinyint(1) NOT NULL default '0',
ban_reason varchar(255) default NULL,
newpass varchar(34) default NULL,
newpass_key varchar(32) default NULL,
newpass_time datetime default NULL,
last_ip varchar(40) NOT NULL,
last_login datetime NOT NULL default '0000-00-00 00:00:00',
created datetime NOT NULL default '0000-00-00 00:00:00',
modified timestamp NOT NULL,
PRIMARY KEY (id)
) TYPE=MyISAM
then re-create the table.