APPasswordChangeAllowed failed

Hello,

Yosemite 10.10.2 Server (4.0.3) crashed after a power outage and corrupted Open Directory. Various Time Machine restores didn't fix the issue, so more drastic measures had to be taken. Managed to recover it eventually by destroying LDAP and restoring an archive, however, I seem to be unable to change passwords for Local Network Users. In the Users pane of Server app I select the Local Network Users and need to click the lock on the bottom of the screen to proceed. When prompted for the (dir)admin credentials, they no longer work. Have tried using terminal command as described here (OS X Server: How to reset the Open Directory administrator password - Apple Support) and any of your help is very much appreciated here!!

I get the following result in Terminal after setting a new password :

Result: Server is unwilling to perform (53)

Additional info: APPasswordChangeAllowed failed