I specify password settings "Require complex passcode" = Ignore. The profile is applied to a Mac, in Settings → Profiles I see "Simplpe password" = True, but I can't set a user password that contains repeating characters. For example, I specify the simple password Qwerty123 and MacOS does not allow me to save it. Why? How to allow simple passwords with repeated characters in Monterrey and Ventura? I understand that this is not safe, but this setting is there and I want it to work.
Has the device been rebooted since the profile was installed or updated? Some of these configuration profiles need a reboot to take hold. I am seeing the same thing you are, but I have not rebooted yet. We use JAMF Connect to force IDP password requirements, so we dont actually use the MDM passcode payload.
Not that these links answer your question, but figured I would shove the documentation here for anyone who needs to read it.