Symptoms
A password greater than 8 characters is not properly truncated with ESSO when using MS$SAME for the 3270 logon.
Status
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
Resolution
This issue is fixed in the following cumulative update for Host Integration Server:
KB5027641 - Cumulative update package 1 for Host Integration Server 2020
References
Learn about the terminology that Microsoft uses to describe software updates.