hotmail says my password is wrong right after i reset it

check which account picker you land on too. if the address is also used as a work or school account, Microsoft asks which one you mean, and picking the wrong one gives you password incorrect even with the right password.

Is your browser auto-filling the password field? That's what it was for me - it kept dropping in the old saved one. Clear the field and type the new one by hand. Other things to rule out: Caps Lock or a different keyboard layout, and logging in with a different address than the one you reset (aliases trip people up). Also any phone or Outlook app still using the old password will keep failing in the background, so update those after.