That's not true. I just verified that create-domain command does indeed check for the length of the password. If you enter password less than 8 chars long, you'll see the following message:
CLI128 Password for admin password must have 8 or more characters.
Command create-domain failed.
Are you using the installer to create the default domain during installation of v3 prelude? If the installer is allowing you to enter password less than 8 characters then it's a bug in the installer. Please file a bug.
Thanks,
Jane
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