This is how I fixed it.
Edit grommunio-web/server/includes/core/class.pluginmanager.php
comment out the following lines 182,183 & 187 save and restart php-fpm
Those lines seem to be the issue because they are wrapping around the check to see if the plugin should be enabled or not.
Lines 1116-1118 checks to see if the user is in db or ldap and are the same as the lines that are commented out above.
# cat -n /usr/share/grommunio-web/server/includes/core/class.pluginmanager.php |sed -n '179,187p;1113,1118p'
179 // Decide whether to show password plugin in settings:
180 // - show if the users are in a db
181 // - don't show if the users are in ldap
182 // if (isset($this->plugindata['passwd'], $GLOBALS['usersinldap']) && $GLOBALS['usersinldap']) {
183 // unset($this->plugindata['passwd']);
184 if (($passwdKey = array_search('passwd', $this->pluginorder)) !== false) {
185 unset($this->pluginorder[$passwdKey]);
186 }
187 // }
1113 // Decide whether to show password plugin in settings:
1114 // - show if the users are in a db
1115 // - don't show if the users are in ldap
1116 if (($key = array_search('passwd', $pluginList)) !== false && isset($GLOBALS['usersinldap']) && $GLOBALS['usersinldap']) {
1117 unset($pluginList[$key]);
1118 }