Nextcloud Password Policy is an app that enables a Nextcloud server admin to define certain rules for passwords. Prior to versions 22.2.10, 23.0.7, and 24.0.3 the random password generator may, in very rare cases, generate common passwords that the validator itself would block. Upgrade Nextcloud Server to 22.2.10, 23.0.7 or 24.0.3 to receive a patch for the issue in Password Policy. There are no known workarounds available.
https://github.com/nextcloud/security-advisories/security/advisories/GHSA-c7mw-9q4r-8qwr