To me it looks like their frontend guy just copy/pasted the password field with all validation over without thinking twice. I wouldn’t say this speaks to their general security competence.
While that may be true(copy/🍝), it implies that their code quality and QA process is broken and some of the most important fields/data are not being closely looked it. It certainly DOES speak to their overall security competence.
Could also be backend validation is broken, so FE just shows the user something useful rather than waiting for backend to reject and show a generic error message.
Been there, seen that. I got a login into the mainframe of the hospital I was working at. After the first login, it prompted me to change my password. So I did. It had a field width of 12 characters for the password which I used completely.
I logged out and tried to log in again. And found that the login screen password field only allowed for 8 characters.
I got my password reset, chose a new one with only 8 chars, and the first thing I did after completing the login process was to file a bug report. My boss was completely shocked when she got a copy of the report (basically asking who the f-ck is complaining about the computing centers software), and even more shocked when I told her where and how to submit a bug report herself. She had a notebook listing things that had annoyed her to no end on the system...