It often means that one could have derived the correct password from the set of rules - but those rules are not shown when asking for the old password

I'm glad that Android (still) gives us the option to chose one or the other.

It's a reminder that in big parts of todays digital world you own nothing. All access, presumed rights, and data can be taken from you whenever a big company decides to do so. Is it news? Probably not. Are people aware of it? Clearly not - at least nobody acts like it.