Hey @sshende ,
thank you for your post and welcome to our community!
You already shared your solution via e-Mail and I would like to make it available for the community:
We found out that the password has to be reset first in order to change the password by user. I think the change password option working with 1.60 version does not straight away works with 2.38 version until we reset it on new SCM-Manager version.
Thank you so much!