I know this thread is old but hope this helps someone out... This is confusing because it is the sasadm@saspw, the process is a bit more confusing.
This error message is because the sasadm@saspw account is locked out due to the number of failed authentication attempts with SAS Metadata server on sas.hostname.co which runs on port 8561 for TCP connections. However this is the SAS Metadata unrestricted administrator account, so resetting it is a bit unique. This is not an operating system level account, it a SAS Internal account, the password is updated by the SAS Deployment Manager. However you need to have the current password to reset it with the SDM or have another SAS Metadata user, for example sasdemo, who is also an unrestricted administrator. This does not exist by default, here is how you can reset it with the current password and without;
If you have the current password for the sasadm@saspw account and it is not locked, you can login to SAS Deployment Manager by launching /sashome/SASFoundation/9.X/sasdm.sh, selecting the update managed password option then choose to update the sasadm@saspw users password. When prompted for the SAS unrestricted administrator enter sasadm@saspw and password as usual. However you probably cannot do this because you don't have the password and/or locked out.
If you do not have the current password for sasadm@saspw or the account is locked out, locate a text file named adminUsers.txt which is probably in your Metadata servers config/Lev1/ directory somewhere. I forget exactly where it is but that should be the exact name of the file including capitalization.
If on Linux you can use these commands to find it;
locate adminUsers.txt (if available) or find /some_path/config/Lev1/ -name "adminUsers.txt"
Once you find it, you will need to edit the adminUsers.txt file to add a username of another existing SAS Metadata user account such as sasdemo if you set this up. In this file you will also see the sasadm@saspw account, do not remove the sasadm@saspw user.
After you edit adminUsers.txt, restart your Metadata server with the config/Lev1/SASMeta/MetadataServer/MetadataServer.sh restart command or config/Lev1/sas.servers restart script if you wish to reboot all SAS servers on this host.
Once at least the Metadata Server has restarted launch the sashome/SASDeploymentManager/9.X/sasdm.sh program.
When logining into the SAS Deployment Manager and it asks you for the SAS unrestricted administrator (or sasadm@saspw) credentials, enter the username and password of the user account you added to adminUsers.txt. While I wouldn't recommend it, you could probably use this account to access SMC or ENV Manager at this time.
Then select the options to update managed passwords, select the sasadm@saspw account and continue through the SAS Deployment Manager until the password is updated. This will return the system to normal, now you can use the sasadm@saspw user account with the new password.
You will also probably want to remove the additional user from adminUsers.txt once completed then restart your Metadata Server to save the changes to adminUsers.txt. This user will return to normal functionality after Metadata is restarted.
This should work on all versions of SAS 9.3, SAS 9.4, and probably SAS 9.2.