Thank you for reporting this. I think this is because you have:
1) Signed in to the Windows app.
2) Signed in to the web.
3) Changed the password via the web.
4) Gone back to the Windows app and you are now trying to do the invite – but the app has remembered the wrong password, which causes the invitation to fail with a bad error message.
The correct behavior here would be for the Windows to realize it is no longer correctly signed in, and sign out.
Please try to sign out of the Windows app and sign in again, and retry. If you can confirm if this works or not, we’ll then make a bug report about it.