I’ve had challenges with configuring e-mail myself on a fresh install recently, but noting from your question, you are receiving the e-mail for resetting the password.
I have just tried it myself and it just all just worked for me. Creating the password when a new account is being made, changing it from the profile page and the forgot password flow (mail did end up in my spam box tho).
Given the current description, I would not know how I could help you further. Any error message (or perhaps screen recording of the steps) would be required for me to help you further.