In password security, the longer the better. With a password manager, using more than 24 characters is simple. Unless, of course, the secure password is not accepted due to its length. (In this case, through STOVE.)
Possibly indicating cleartext storage of a limited field (which is an absolute no-go), or suboptimal or lacking security practices.
Whoever the company is, we have to assume it’s not a security-related company. Because, surely, none of those would do that ever.