This security setting determines whether the operating system stores passwords using reversible encryption. This policy provides support for applications that use protocols that require knowledge of the user's password for authentication purposes. Storing passwords using reversible encryption is essentially the same as storing plaintext versions of the passwords. For this reason, this policy should never be enabled unless application requirements outweigh the need to protect password information. This policy is required when using Challenge-Handshake Authentication Protocol (CHAP) authentication through remote access or Internet Authentication Services (IAS). It is also required when using Digest Authentication in Internet Information Services (IIS). Default: Disabled.
Windows Settings/
Security Settings/
Local Computer Policy -> Computer Configuration -> Windows Settings -> Security Settings -> Account Policies -> Password Policy
After changing group policy options, you need to update group policy. If you do not update group policy then settings will not effect. To update it just simply type below command and also sample image is shown.
gpupdate /force
In about command we used "/force" option, this will help up to update policy options forcefully.
