Behavior changes in a new master database

In a new Adaptive Server master database, or in an upgraded master database after allow password downgrade is set to 0, the server maintains encrypted passwords in syslogins using only the new algorithm in the password column. Only the SHA-256 algorithm authenticates the connection requests and stores the password on disk.

Issue sp_passwordpolicy to determine if a server was upgraded (for example, from version 15.0 to 15.0.2) and maintains passwords using algorithms from the pre- and post-upgraded server, or if the server is newly installed and includes a master database that uses the most recent algorithm (from the 15.0.2 version):

sp_passwordpolicy 'list', 'allow password downgrade'