Cobalt has added encryption to the password field to increase security for end users. You will be able to manually update the field in CRM, but when you save the record the information will be "hashed" so that it cannot be read on the backend.
Here is what a typical Portal tab will look like in your CRM.
When a customer updates their password on the portal the new password is stored but will be hashed as you see above.
If you need to update a customer's password you can do so in CRM by typing the new password into the field.
The password is visible until you click Save. That is when the system hashes it.
The customer uses the password entered, ex:Password, not the encrypted text you see in the field in CRM.