No, if you only see the one in Toad’s login window I think we’re good there. I’m looking at the source and see nothing obvious as to why Code Insight would fail when the main Toad session can be established. Code Insight does create its own session behind the scenes, but it clones the active session and should have the same user, password, server as your main session. I’m not familiar with Oracle IdM and have no way to test that here. I’m assuming that Code Insight and TSR did work properly for this user prior to the password change?
I don’t know if it’s related, but there was a bug with TSR in 12.12 and earlier when sending queries from Toad to TSR. I don’t get ORA-01017 error, but I did get various other ORA exceptions just now testing with passwords having characters that can interfere with connect string parsing (/ and @). These issues were fixed in Toad 13.0. If you can try Toad 13.1 (even the Trial version) to see if the your issues persist that would help.