Hello Peter Alexandris,
What you’re describing usually points to how Windows is caching credentials during the lock/unlock process in a domain environment. In many cases, the cached session tries to reuse the last token but fails, which is why the unlock attempt shows “incorrect user or password,” even though the credentials themselves are fine.
One practical step is to check whether the affected machines are properly syncing with the domain controllers and that Kerberos tickets are being refreshed correctly. If the trust relationship between the workstation and the domain is unstable, this behavior can appear every time. Another area to review is Group Policy, sometimes policies around interactive logon or credential delegation can interfere with the unlock process. Rejoining one of the affected machines to the domain is a good test to confirm if the trust is the root cause.
Since this is happening consistently across multiple users, I’d also recommend checking the event logs on both the client and domain controller side for authentication errors around the time of the failed unlock. That will give you a clearer picture of whether it’s a local cache issue or a domain replication problem. In short, the accounts themselves are fine, but the cached session is failing, so focusing on domain trust and policy settings should help resolve it.
I hope the response provided some helpful insight. If it clarified the issue for you, please consider marking it as Accept Answer so others can benefit too. Thank you!
Jason.