Hi - I ran into this and did couple of tests and I'm not sure if this is a bug, or I need to update my settings:
In Joomla configuration, under Users: Options, I have customized the password strenght = symbols, numbers, uppercase, count, etc. - so that the user is required to create "strong-er" password.
However, when testing it, it looks like CB is ignoring it in both cases: when "Generate Registration Passwords" is set to yes or no - in CB registration, I can create simple password (not following the rules set as above) and it will accept it...
please advise - thanks!