In password security, the longer the better. With a password manager, using more than 24 characters is simple. Unless, of course, the secure password is not accepted due to its length. (In this case, through STOVE.)
Possibly indicating cleartext storage of a limited field (which is an absolute no-go), or suboptimal or lacking security practices.
That sounds like the limitations of an ancient mainframe system. If so, then someone trying to brute force their way in would be more likely to crash the system instead.