The APPS password appears to have been successfully updated and Autoconfig runs without issue.
However, Discoverer users have authentication problems.
The issue is caused by a data corruption issue in the fnd_user table.
To implement the solution, execute the following steps:
1. Use FNDCPASS to reset the APPLSYSPUB password.
e.g. FNDCPASS apps/ 0 Y system/ ORACLE APPLSYSPUB PUB
2. Retest for the issue.