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"Unlock and restore local data" Error Message on Chromebook

If after a student logs into a school Chromebook and gets a message stating "To unlock and restore your local data, please enter your old Chromebook password"

Allow the student to re-enter the same password again, then click "Next "

If that does not work, please click on "Forgot your old password?" link that is right below the textbox labeled "Enter old password"

Next, click on the button labeled "Proceed anyway"