Graylog Email Alert Password Not Working?

At the beggining of the configuration file, we can read the following:

# This is the Graylog configuration file. The file has to use ISO 8859-1/Latin-1 character encoding.
# Characters that cannot be directly represented in this encoding can be written using Unicode escapes
# as defined in https://docs.oracle.com/javase/specs/jls/se8/html/jls-3.html#jls-3.3, using the \u prefix.
# For example, \u002c.

So, double check that each chars in your password are listed in the ISO/IEC 8859-1 code page. Otherwise, you'll have to escape them. When in doubt, escape the char.