Hello,
In the nightly server this is not working when the password has been already entered.
(in other words : I stayed at the same coordinate when I got a desynch before reentering my password but when I had already entered my password before the desynch I reconnected to the center of the map)
Oh and one suggestion : if a password is needed for the active player, prompt it immediatly on reconnect.
My observation was not related to the password. It was rather random, and depended more on the active player at the time of desync. But I returned also with password removed, although not all the times.