On my Windows 10 Desktop, the Windows Recovery Environment is asking me for a password before launching Command Prompt. So far so good. Then I enter my password, which I know is correct, because I just logged in with it on my Windows 10 Laptop. Password is incorrect. What?!
Solution: Back in Windows, go to Settings > Accounts > Sign-in options > set “Require Windows Hello sign-in for Microsoft Accounts” to off.
Bonus: If your Windows Recovery Environment keyboard layout is not what you want, go to Settings > Time & Language > Language > Keyboard (first icon, second row on top) > in the drop down, change “Use language list (recommended)” to the layout you want.