If you’re getting a “bad password” then it means… that you’re probably not entering the right password!
Normally, the online password will be synchronized with the offline data, so you can sign in with the same password.
However, there are situations where a different password will be used offline than online – namely when you change the password online (either through another system, or via the web), and then try to sign in offline. I can’t see any trace of that in your situation though.
This should work as advertised, so either it’s a bug or there’s some misunderstanding. You are welcome to contact our support via email, and then we can request some further information and see if we can determine where the problem lies.