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Question if I am reading this correctly. On this bug it states that it was fixed. Does that mean its fixed by using the workaround or it has been fixed via an updated piece of firmware. We ran into the bug after upgrading to 9.3.5 of NX-OS on a 93180...
In the 3560CX line which is close to the 2960 the latest version of the IOS [15.2.(7)E3] allows you to insert a type 5/8/9 passwords. We were running into the same problem on the device with 15.2.(7)E1. Looks like they may have fixed that.