Hello @Christopher J Nuss,
Thank you for posting your query on Microsoft Q&A.
Based on your description, it seems that whenever users attempt to reset their passwords, they encounter the error message: "You can't reset your own password because password reset isn't properly set up for your organization."
I reproduced this issue in my tenant to better understand its causes. Please refer to the screenshot below and follow these resolution steps if your users are experiencing the same error:
This issue occurs when the "Microsoft password reset service" service principal has the "Enabled for users to sign-in?" option set to "No."
To resolve this, follow these steps:
- Log in to the Azure portal with a Global Administrator or Application Administrator role.
- Go to Microsoft Entra ID and select Enterprise Applications.
- Remove the Application type == Enterprise Application filter by clicking the "X" icon.
- Search for the application name "Microsoft password reset service" and select it.
- In the Properties blade under Manage, enable the "Enabled for users to sign-in?" option by setting it to "Yes" (as shown in the screenshot below).
Once this is done, try resetting the password and check the behavior.
I hope this information is helpful. Please feel free to reach out if you have any further questions.
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Thanks,
Raja Pothuraju.