BuddyPress.org

WP. 3.9.1 MU
BP 2.0.1

I can’t figure this one out for the life of me. Here’s the procedure:

1. Admin of site creates new user
2. New user gets activation email
3. New user activates and is then sent an email with their username and password thanking them for logging in
4. Password says it is [User Set]; no admin ever set the password (it was not asked for) and the user in question is never prompted to set password
5. General confusion of the non-tech savvy admins and baffled users ensues

Is this default behavior? My company hired an independent contractor to make this site, and I am somewhat new to multisite, so I myself am somewhat confused here too. Not sure where to start trying to fix this problem. I deactivated Buddypress and the activation screen showed the randomly set WP password, which is what I want (and if I could even include it in an email that would be great!)