So this didn't help me since I have my hard drive encrypted with FileVault (which seems to also be preventing me from just wiping and reinstalling fresh, grrr...), but it seems like it might work for someone who isn't using FileVault.
For reference, I read these steps from here:
http://www.macworld.co.uk/how-to/mac/what-do-if-youve-forgotten-your-mac-passwor d-3594395/
1. Turn off your Mac (choose Apple > Shut Down).
2. Press the power button while holding down Command-R. The Mac will boot into Recovery mode. When you see the load bar appear you can let go of the keys. It may take a few minutes to load.
3. SKIP THIS STEP - Select Disk Utility and press Continue.
4. Choose Utilities > Terminal.
5. Enter resetpassword (all one word, lowercase letters) and press Return
6. Select the volume containing the account (normally this will be your Main hard drive).
7. Choose the account to change with Select the User Account.
8. Enter a new password and re-enter it into the password fields.
9. Enter a new password hint related to the password.
10. Click Save.
11. A warning will appear that the password has changed, but not the Keychain Password. Click OK.
12. Click Apple > Shut Down.
Hopefully this will help someone with this incredibly aggravating and productivity halting bug with the OS X Reset Password process.