It is failing when creating the new Oracle Schema-user called ''default_myproject_db'' and trying to assign it your 6-character psssword, which does not comply with your new policy.
This new policy may be a big problem -- at least one that causes lots of confusion going forward.
Some facts about the way QC/ALM uses Oracle and process to change the password:
1) each ORA schema-user has the same name as the schema (i.e. ''default_myproject_db'').
2) each project in QC has a corresponding Schema and schema-user
3) each project in QC behaves ''independently'' -- such that each one *could* have a different password (the default 6-character one, or something different), but that would get confusing - especially during a QC-server upgrade.
4) QC has on the DB-Servers tab, the setting of the ''Application Lifecycle Management User Password'' - you can set it to something other than the default 6-character (or other one if you have already changed it from the default) one and it will use that when it creates NEW project, but will still use the old one for all existing ones -- this behavior of continuing to use the old passwords is for QC when using ORACLE Only!
5) if you want to change ''Application Lifecycle Management User Password'' across the board for ALL project Schemas, you would need to have the DBA change the QC-related Schema-user passwords to be all the same one (and never expiring), then for each project do a REMOVE, edit DBID (with new password - encrypted form), then RESTORE each one.
6) you MUST also then change the password used by qcsiteadmin_db as used in the QC Application in siteadmin.xml and re-deploy the application (also encrypted form).
7) To find the encrypted form of your NEW password, create a NEW project, then look in it's DBID.XML file and use the string in the DB_USER_PASS tag.
**This is lots of work for a ''simple'' ORACLE policy change!**