Auto approval and auto login

Hi, I’m a new user and trying the default registration form and selected the option “Auto approval and auto login” to keep things simple. The plugin is working except when [any] new user logs out and tries to log back in WordPress will not accept the password. I must go into their profile as Admin and reset their password then they can log in again. Anyone else have this issue? Maybe I’m missing something in the documentation?

The page I need help with: [log in to see the link]