If the ACS is administering your users (that is, you're using the TACACS+ or Radius login module in LMS), then you don't have to worry about user passwords. All of that will be handled in ACS, and the user will just need to know to use the new password when next logging into LMS.
As for updating DCR, this cannot happen automatically. Whenever your ACS device account password changes, you will either need to go to Common Services > Device and Credentials > Device Management in the GUI, then select all the devices, and click the Edit Credentials button. Then update the password for the telnet/SSH user.
You could also do this using dcrcli, by first exporting the device list using the dcrcli "exp" command. Then search and replace the old password with the new, then use the impFile command with the "cr=file" argument to import the changes back into DCR.
There is going to be a lot more ACS integration in LMS 4.0, but I haven't seen where this specific type of integration will be there. However, if all of your devices use the same ACS account, the overhead for a user with one device vs. one with 10K devices is the same. The credential update can be done universally in one step.
So finally, right now there is no possibility of - if a user has changed the password for login to ACS and if the same previous tacacs pwd was configured for DCR devices, LMS will not be able to give notification or sync the password with the user, right?
This is correct. LMS has no way of synchronizing DCR passwords with ACS in an automated fashion. However, you could configure job policies to require job-based passwords (under RME > Admin > Config Mgmt > Config Job Policies), and that would force users to specify a username and password at job creation time.
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