Nope. Or, rather, it depends on the situation. But here he’s using “Password2” to sign to AxCrypt, while the files are actually encrypted with “Password1”. Resetting will seem to have the same effect in this particular case, while slightly different things are happening beneath the hood.
It’s not clear how Robert “entered Password2 as his password”, but it might be that there was an upgrade to AxCrypt 2 at the same time.
In any case, one should always use the *change* password when the current password is known.