Microsoft finally removes 16-character limit for passwords in Azure AD
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Even though the on-premise Active Directory server supports passwords longer than 16 characters, Azure AD had a 16-character password limit. Based on the customer feedback, Microsoft yesterday announced that they will finally support more than 16-character password for cloud user accounts in Azure AD.
With this support, Azure AD users will be able to set a password with up to 256 characters. And yes, spaces are now supported in password.
Source: Microsoft
