Lockoutstatus bad pwd resets to zero

[IndyCoder]

I am having trouble understnding why my users account are reseting the bad pwd bit on lockoutstatus. I have a domain security policy that has the following criteria:

lockout duration = 0 minutes
threshold = 5 attempts
Reset counter = 24 hours

I can see the user bad pwd increment and then after a while it clears the counter but keeps the last bad password date and time. Has anyone experienced this?

Any help would be appreciated.
Thanks

 

[TNGPicard]

What GPO are you applying the policies in? This will only work on Domain accounts when done through the default domain policy AFAIK.