Hi JasonLoosus (and others in this thread):
Please check out the new Windows LAPS "improved readability" password complexity feature (and other new features!) that dropped in today's 26040 Canary build:
Announcing Windows 11 Insider Preview Build 26040 (Canary Channel)
I am actively seeking feedback on all of these features - just let me know.
I realize that the new "improved readability" password complexity feature does not exactly match the requested feature (configurable ability to exclude certain characters). To keep things as simple as possible, I chose instead to implement an alternate "dictionary" setting which has all of the confusing characters removed. (Plus improving the password font as used in ADUC.)
Of course, you could also just switch to using passphrases which are even better IMO. 🙂
Jay