Improve password retry flow

src/password_manager/manager.py

@@ -377,6 +377,9 @@ class PasswordManager:
     ) -> bool:
         """Set up encryption for the current fingerprint and load the seed."""
 
+        attempts = 0
+        max_attempts = 5
+        while attempts < max_attempts:
             try:
                 if password is None:
                     password = prompt_existing_password("Enter your master password: ")
@@ -393,11 +396,13 @@ class PasswordManager:
                 try:
                     self.parent_seed = seed_mgr.decrypt_parent_seed()
                 except Exception:
-                msg = "Invalid password for selected seed profile."
+                    msg = (
+                        "Invalid password for selected seed profile. Please try again."
+                    )
                     print(colored(msg, "red"))
-                if exit_on_fail:
+                    attempts += 1
-                    sys.exit(1)
+                    password = None
-                return False
+                    continue
 
                 key = derive_index_key(self.parent_seed)
 
@@ -411,17 +416,22 @@ class PasswordManager:
 
                 self.fingerprint_dir = fingerprint_dir
                 if not self.verify_password(password):
-                print(colored("Invalid password.", "red"))
+                    print(colored("Invalid password. Please try again.", "red"))
-                if exit_on_fail:
+                    attempts += 1
-                    sys.exit(1)
+                    password = None
-                return False
+                    continue
                 return True
+            except KeyboardInterrupt:
+                raise
             except Exception as e:
                 logger.error(f"Failed to set up EncryptionManager: {e}", exc_info=True)
                 print(colored(f"Error: Failed to set up encryption: {e}", "red"))
                 if exit_on_fail:
                     sys.exit(1)
                 return False
+        if exit_on_fail:
+            sys.exit(1)
+        return False
 
     def load_parent_seed(
         self, fingerprint_dir: Path, password: Optional[str] = None

src/utils/password_prompt.py

@@ -106,30 +106,38 @@ def prompt_new_password() -> str:
     raise PasswordPromptError("Maximum password attempts exceeded")
 
 
-def prompt_existing_password(prompt_message: str = "Enter your password: ") -> str:
+def prompt_existing_password(
+    prompt_message: str = "Enter your password: ", max_retries: int = 5
+) -> str:
     """
-    Prompts the user to enter an existing password, typically used for decryption purposes.
+    Prompt the user for an existing password.
 
-    This function ensures that the password is entered securely without echoing it to the terminal.
+    The user will be reprompted on empty input up to ``max_retries`` times.
 
     Parameters:
-        prompt_message (str): The message displayed to prompt the user. Defaults to "Enter your password: ".
+        prompt_message (str): Message displayed when prompting for the password.
+        max_retries (int): Number of attempts allowed before aborting.
 
     Returns:
-        str: The password entered by the user.
+        str: The password provided by the user.
 
     Raises:
-        PasswordPromptError: If the user interrupts the operation.
+        PasswordPromptError: If the user interrupts the operation or exceeds
+            ``max_retries`` attempts.
     """
+    attempts = 0
+    while attempts < max_retries:
         try:
             password = getpass.getpass(prompt=prompt_message).strip()
 
             if not password:
-            print(colored("Error: Password cannot be empty.", "red"))
+                print(
+                    colored("Error: Password cannot be empty. Please try again.", "red")
+                )
                 logging.warning("User attempted to enter an empty password.")
-            raise PasswordPromptError("Password cannot be empty")
+                attempts += 1
+                continue
 
-        # Normalize the password to NFKD form
             normalized_password = unicodedata.normalize("NFKD", password)
             logging.debug("User entered an existing password for decryption.")
             return normalized_password
@@ -140,10 +148,13 @@ def prompt_existing_password(prompt_message: str = "Enter your password: ") -> s
             raise PasswordPromptError("Operation cancelled by user")
         except Exception as e:
             logging.error(
-            f"Unexpected error during existing password prompt: {e}", exc_info=True
+                f"Unexpected error during existing password prompt: {e}",
+                exc_info=True,
             )
             print(colored(f"Error: {e}", "red"))
-        raise PasswordPromptError(str(e))
+            attempts += 1
+
+    raise PasswordPromptError("Maximum password attempts exceeded")
 
 
 def confirm_action(