When creating a new user and selecting on "do not set the password" the system sends the new user a link to recover their password. There are too many steps and can be confusing for a new user that has never used the database before.
Most websites that asks a new user to complete their account, does not have that many steps. Please make it more simplified to click on the link, update password, and complete profile.
Thank you for this detailed post about the user experience when you are setting up an account for them. I will document this and make sure our Development team takes a look at this when considering future development.