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(+2)

A branches to F if you fail the password on Day 17, B branches to G if the same.
Given Tyson auto-clears the Day 17 password for plot reasons, any other character should do.

Given there are no other checks, I'd be curious to know what issue you're hitting given by that stage the game kind of falls apart logically with who should be dead otherwise.

On my first playthrough I got the password right on first few attempts, but I got curious to what would happen if I got it wrong so I went back; but nothing actually happened so at the time I just assumed that Thanatos was lying or something?

I did see the scene of Tyson killing Orly by failing the password though, but it only worked for me on the paths where I reveal Oswin.

I wondering if it's a bug and perhaps I should reinstall the game..

(+1)

It sounds like a bug. Failing the password auto-boots you to F and G unless you're on Tyson's route. You CAN put the password in on Tyson's route and see the password scene as well, which changes some dialogue but it's already auto-solved.