Why am I seeing Password Reset in audit log when creating a new contact from the console?

Environment:

All versions

Resolution:

The reason for seeing "Password Reset" transaction in Audit Log when a new contact is created from the application is caused by the fact that the logged in interface has Pass Trough Authentication activated (PTA_ENABLED is set to 1 or Yes). More information about PTA can be found on Answer ID 1575: Accessing PTA Guides.

Notes:

This behavior is intended because the only way for a contact to login should be via the PTA and the password is invalidated by triggering the Password Reset transaction as soon as the contact is created.