Maybe Google has having a delay to activate the password application. I tester 2 gmail account with password app and wasn't working last week.
I think Google take transit time on this new feature. I will test it out right now again in our showroom.
Okay great, i tested with 2 machines.
Google was not working last week with Application Password and but this week its working now.
Maybe Google was need some times to update all their servers because customer call on a daily based and some has still worked this week and stopped monday.