Seems like the baremetal operator doesn't react to a sudden password change on the IPMI interface (not tested with redfish yet), so even having credential issues it doesn't change the error status to "registration error". 

Openshift 4.12.42

Always

    1. Deploy baremetal IPI cluster succesfully
    2. Change password on 1 bmc
    3.
    

No change in error status on BMH until a restart of the "metal3" pod is done or until added the annotation "detached" is added and later removed of the baremetal host

As ironic pod is periodically doing status checks on the nodes, if it find a credential issue move the status to registration error