Hi,
Thank you very much for your quick reply and clear instructions — I appreciate it!
I followed your advice and disabled the “Send the new account email with a link to set a password” option under WooCommerce > Settings > Accounts & Privacy.
After saving the changes, I registered a new user again — this time manually entering a strong password during registration.
Unfortunately, the issue still persists:
The message “Your account is using a temporary password…” still appears in the customer dashboard.