Invalid value combination; required password length (&1) > &2

What causes this issue?

The total of the values of the following security policy attributes must
not be higher than the maximum password length (40, or 8, if
login/password_downwards_compatibility = 5):
<DS><DS:DE.SECPOL_MIN_PWD_DIGITS>MIN_PASSWORD_DIGITS</></>
<DS><DS:DE.SECPOL_MIN_PWD_LETTERS>MIN_PASSWORD_LETTERS</></> or the
total of <DS><DS:DE.SECPOL_MIN_PWD_LOWERCASE>MIN_PASSWORD_LOWERCASE</>
</> and <DS><DS:DE.SECPOL_MIN_PWD_UPPERCASE>MIN_PASSWORD_UPPERCASE</></>
<DS><DS:DE.SECPOL_MIN_PWD_SPECIALS>MIN_PASSWORD_SPECIALS</></>
This condition has been violated.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Check and correct the values of the security policy attributes listed
above.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.