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If you upgrade to two-factor authentication, you can’t log in to your Mac with an iCloud password

A few releases of what was then called Mac OS X, Apple added an option that seemed a convenient way to reduce the number of passwords you had to remember. While setting up a system (or later via the Users & Groups system preference pane), you could opt to use the password for your iCloud account to “login and unlock” your Mac. The ostensible idea was to make it easier for regular human beings who didn’t want to maintain multiple strong passwords to protect their stuff to use a single one in two related locations.
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