Dell has released the WMS 3.1.1 hotfix which should fix the password issue.
However, it looks like that in most cases the hotfix kills your WMS install. After the install, Tomcat does not start anymore. You would have to copy a backup version of the server.xml afterwards to get it up and running again.
But, even if you get it running, some of you and some others have reported that the initial issue is not resolved.
I will keep you updated if any news gets available. Until then I would highly recommend to NOT install that hotfix.