Did you check in server.log as well ?
Yes i did check the server.log and there are no exceptions/errors. I really don't understand.
As far as I know MSAD requires you to have SSL connection to LDAP to alter password attribute.
I have never tried to setup this so please let me know if it works for you.
I'm assuming you have customized login-config.xml.
Did you config jboss-service.xml and then ldap_identity-config.xml?
In the first file you should change the ConfigFile attribute for the "portal:service=Module,type=IdentityServiceController" mbean to be the second file ("conf/identity/ldap_identity-config.xml"). Then in the identity file you need to enter in some of the same information you used in the login-config.xml.
Searching those file names should lead to documentation.