You are prompted to enter a password when you sign in to Microsoft Dynamics SL and the database is Windows Authenticated, even though you have not selected to require the entry of a password when users sign in.
To resolve this issue, run the follow SQL script in Microsoft SQL Server Management Studio against the SL system database:
update userrec set password = '' where UserId <> 'SYSADMIN' and UserId <> 'SERVICEUSER' and RecType = 'U'