I just tried this on a user in my test org. The user started as ACTIVE, and after hitting /api/v1/users/:id/lifecycle/reset_password the user status was changed to RECOVERY.
Can you replicate your problem with another user? If so, I’d be curious if
The user started as ACTIVE, or some other status?
This user is an Okta-mastered user, or is a user from somewhere else (social auth, AD or LDAP, etc)
For a user to go to RECOVERY state, it should be in ACTIVE state first.
If the user is in PROVISIONED state, resetting the password has no effect on his state, as he’s not yet ACTIVE with a password.