Windows – How to find out the password complexity policy

It doesn't matter that the account isn't a domain account: The policy is for the computer, nothing you do short of rebuilding it and/or removing it from the domain will surpass it.

Even if it did, questions on circumventing security policies are off-topic, and will likely be closed, sorry.

I've just taken a look at the Password Policy on my computer (Win 7 Ult 64-bit) and even though I am never prompted to change my password, the value of Maximum password age is set to 42 (default). I know that when it is set to 0, a user's password will never expire, so you should be having no problems setting a password.

I've also tried with the value set to 0 and I haven't been able to replicate your problem. You could try changing the value to something other than 0 and then changing it back to 0 and see if that helps. Or you could change the value to an x number of days and tick the Password never expires option when you create a user to bypass that setting.

Finally, you could try setting a password that meets the complexity requirements as the Group Policy Object may not be applying the settings properly.