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Yes, there is a password length limit applied by LO for all MS formats, binary (tdf#65492) and OOXML (tdf#97086). The former is not related to your question (there is a problem of opening non-conforming binary documents created by a specific MS Office version), but the latter is the bug affecting you. LO only uses first 15 characters of entered password to encrypt the document; so on opening time, you need to only enter 15 initial characters (LO doesn't truncate the password on opening).