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I use a password generator and it appears that either the change password or login doesn’t like some special characters, even though the form accepted the new passwords. I just removed some characters and got lucky.
I have had the same issue. After reading all the posts I did the following, which has resolved it for me: In the app, select forgot password. I reset my password - using my usual Sainsbury's/Nectar password. Tried to log in to the app and it worked !
The smart shop app kept telling me another account with my card number already existed. What happened was that I had successfully used the smart shop app with a different email address to the one I use for the on-line nectar account. When I changed phone and installed the app on my new phone I used the on-line email and got told that 'an account with that nectar card already exists'. The solution was to uninstall and then reinstall the smartshop app entering the originally used email address for the smart shop app. In other words it seems the on-line and smart shop systems are different, as another comment suggested.