The current reset password server serves one user VM at a time, uses a global lock per VR and slows up VM starting process for a VM that is created by a template with reset password scripts. No only reset password option, but when the VM starts for the first time this happens. The way it serves password uses forking the process/scripts which eats up resources in both process table and memory. For a concurrent launch of 30+ VM the VR hangs/fails. Possible solution in the past includes increase the VR memory.
The solution would be to implement a concurrent single-process multi-threaded password server that works both in basic/isolated network and in VPCs. It's hard to do this in bash, so we can either implement a backward compatible python script that replaces the present bash script, or a compiled program (like a native tool) in C/C++/Go/Rust.