From what you've described, it is very clear that a Microsoft Intune policy is forcing the local account password to be changed. An Intune admin must have recently turned on a local account password policy and that policy was applied to the devices enrolled in Intune. This doesn't just happen and Apple has nothing to do with it. In most corporate environments a dedicated security team would mandate these changes and the engineers / admins apply them to meet corporate information security and compliance requirements. It is unlikely to be a mistake.
However, it sounds like the company wasn't open in clearly communicating the change to the employees. Perhaps the change would be seamless for Windows user while being jarring for macOS users. If the IT department is primarily supporting Microsoft Windows it wouldn't be anything new in the industry for them to overlook the Mac end user experience.
You should be able to see the configuration profiles your employers Microsoft Intune applied to the Mac.
Go to System Settings -> Privacy & Security -> Profiles: By default, this screen would be EMPTY for a retail non-supervised Mac. If you see entries, It will say "This Mac is supervised and managed by <Comany Name>" at the top. That means it is enrolled with an MDM server such as Intune, etc. Double-click each entry in the list and scroll down on each pop-up window and read the settings that are being enforced. It is possible that IT security hides this information from the user. But since a user cannot normally change or remove these profiles most companies do not hide it from view.
Intune enforced a local password policy with expiration (30-60-90 days) and password complexity requirements on the Mac but apparently didn't implement the Apple Kerberos SSO extension profiles which would help smooth things out by ensuring the local account password is changed to match the corporate password. That local password policy is different than the policy being applied on the corporate accounts themselves. Also any corporate logins to cloud services such as Azure / 365 typically acquire an authentication token which eventually expires (time-to-expiration is configurable) so things will just connect until that token expires. Then you have to sign-on to acquire a new token and usually an MFA app like Microsoft Authenticator.
I would recommend that you find out who manages the Intune MDM server and request that they consider implementing a solution to integrate with kerberos and/or Azure AD (maybe a SAML identity provider like Okta / Ping) and allow for sync'ing the local account password with the Active DIrectory / Azure AD account. It will be a far smoother end user experience. There are many ways to accomplish the password sync. It is a very complex topic so have some patience, if it's primarily a Microsoft IT shop, they are unlikely to have much experience with managing Macs.