RDM Dynamic Credential Linking Passwordstate Problems

I think I might be missing something with the dynamic credential linking and Passwordstate.

I have created a passwordstate entry with standard API and chosen my Password List. It shows me the password list and passwords fine, so the API works.

But if I choose this password for a RDP entry it just gives me a password prompt then trying to open a session. If I choose custom credentials and manually type in the credentials it works fine.

I have also tried with setting the password directly in the passwordstate entry and chosen that in the RDP entry. Same issue. :(

The API is allowed to retrieve passwords.