I've tried installing the latest Confluence, also created a dedicated windows account to run the service and gave that account read & write permissions over the Confluence Home dir and the logs, temp and work subdirs in the Confluence installation dir.
And I still get an exception when clicking the link in my email:
A system error has occurred — our apologies!
...
com.atlassian.crowd.exception.runtime.OperationFailedException: com.atlassian.crowd.exception.ApplicationPermissionException:
...
at com.atlassian.crowd.embedded.core.CrowdServiceImpl.updateUserCredential(CrowdServiceImpl.java:318)
caused by: com.atlassian.crowd.exception.ApplicationPermissionException:
...
at com.atlassian.crowd.integration.rest.service.RestExecutor$MethodExecutor.throwError(RestExecutor.java:522)
com.atlassian.crowd.exception.runtime.OperationFailedException: com.atlassian.crowd.exception.ApplicationPermissionException: ��Z�s�����B�z��eI�;)�^ ��d��veoЫ��_��~��a����ޙ�3X:�;�g ��I��؈4Y�_���D����"!��9 )�$S��οFM� ��M�@c�ٓ���$�4�ִ�ɂG�B��,UA> �ݢ���nS�:�� ˬ@�|�Z ��NF�j��: ✢L/�rM3~�h Eے���," �qA+����^/�+�O��xC�;��)F�@�S$^���b��I �r���QLIz��~�R�.�ԇW�k���_��~y\ ���)X�i����DlW�?��� ĢM�V0�4�z�y���!�)g��z�$� iHX��*y��2�= ���y9�t�ə����Ԛ�34���5������n����|�h��y�Ⱥ��߷e��{���MY��h������X��G��g� �@,ۿ���ė�z��:]4�2�JH���)KX[���r`z��5�c�oS?�!i�_Ӓ�-O�@�t���&h� ����C�c���+u#D�O c��vԀR��3��&[a|1�� e+��)� ��/(��Ҳ���XU��&߾ܫ~K�Nc�p��]l'���m��R�>*[�� �[�咺��zɒ6���=Wk����pI�{X��p)�z�t�G]����J*�)� �I�Im.hL#$h�i�d��ږ41] I�?��TV�g(%���8/���e�����ĨLd�+�ׇ-�=f|W���rƨ3.k�sǰ7����M���&@y���}�5��*O0 ����sӇO�ߐ� ��1lB�|������.�}�>)/���`�U�T �WS�BH��'��v��M-x� &?̩.�;�:tٯ�tL��$���Q����a�Z�w5�3!P�Gi��:~ �qF3���1��Л�~U+嫩.a�f�>�����j�p��$|T� �'FM��Ig��4% ����a��EgXC���L �5��fy� ?\X�e�䰺%4��>�[��|��{�{O?\dz.�H;ز=d���M9���u$��H�k�)7�j_YceF�- H�e�z��[��F��p�x�P��#�ƃ��j ��P�c�5\��*,��;�j9�U�V�4 1�� �� �hU��4*���"ڿ'Qu�3��c��g�?}�xk�[��%Sƌ����"(���fZ㏵@�&��VrW��S���s�䮫��i�Q���4e�t��-b�< 6�� u�z�Ey �f+HYD9&����xS4e š�0*�B˙��Є(�J�bCyU���(��x���yaE��]u��S��@���\�"'����@�;ױ /��ڇ��{/�Y�L�:��0���![B�!�������1Z at com.atlassian.crowd.embedded.core.CrowdServiceImpl.updateUserCredential(CrowdServiceImpl.java:318) at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method) at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:62) at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:43) at java.lang.reflect.Method.invoke(Method.java:498) at org.springframework.aop.support.AopUtils.invokeJoinpointUsingReflection(AopUtils.java:333) at org.springframework.aop.framework.ReflectiveMethodInvocation.invokeJoinpoint(ReflectiveMethodInvocation.java:190) at org.springframework.aop.framework.ReflectiveMethodInvocation.proceed(ReflectiveMethodInvocation.java:157) at com.atlassian.spring.interceptors.SpringProfilingInterceptor.invoke(SpringProfilingInterceptor.java:16) at org.springframework.aop.framework.ReflectiveMethodInvocation.proceed(ReflectiveMethodInvocation.java:179) at org.springframework.transaction.interceptor.TransactionInterceptor$1.proceedWithInvocation(TransactionInterceptor.java:99) at org.springframework.transaction.interceptor.TransactionAspectSupport.invokeWithinTransaction(TransactionAspectSupport.java:282) at org.springframework.transaction.interceptor.TransactionInterceptor.invoke(TransactionInterceptor.java:96) at org.springframework.aop.framework.ReflectiveMethodInvocation.proceed(ReflectiveMethodInvocation.java:179) at org.springframework.aop.framework.JdkDynamicAopProxy.invoke(JdkDynamicAopProxy.java:213) at com.sun.proxy.$Proxy90.updateUserCredential(Unknown Source) at com.atlassian.crowd.embedded.atlassianuser.EmbeddedCrowdUserManager.alterPassword(EmbeddedCrowdUserManager.java:180) at com.atlassian.confluence.user.ConfluenceUserManager.alterPassword(ConfluenceUserManager.java:105) at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method) at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:62) at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:43) at java.lang.reflect.Method.invoke(Method.java:498) at org.springframework.aop.support.AopUtils.invokeJoinpointUsingReflection(AopUtils.java:333) at org.springframework.aop.framework.ReflectiveMethodInvocation.invokeJoinpoint(ReflectiveMethodInvocation.java:190) at org.springframework.aop.framework.ReflectiveMethodInvocation.proceed(ReflectiveMethodInvocation.java:157) at org.springframework.transaction.interceptor.TransactionInterceptor$1.proceedWithInvocation(TransactionInterceptor.java:99) at org.springframework.transaction.interceptor.TransactionAspectSupport.invokeWithinTransaction(TransactionAspectSupport.java:282) at org.springframework.transaction.interceptor.TransactionInterceptor.invoke(TransactionInterceptor.java:96) at org.springframework.aop.framework.ReflectiveMethodInvocation.proceed(ReflectiveMethodInvocation.java:179) at org.springframework.aop.framework.JdkDynamicAopProxy.invoke(JdkDynamicAopProxy.java:213) ...
after investigating more and reading about how it works, I've found the problem.
When setting Confluence up as an application in JIRA User Management, the IP list only contained the ip of the server. After I added the host name as well, logging in worked again so the password change was not needed anymore
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