Is this a bootup password that comes up right away when the power is turned on? If so - then the keyboard, mainboard or the flex cable connecting the keyboard to the mainboard is faulty.
I would reconnect the keyboard and clean the flex cable and its connector, I've found sand inside two laptops so far that had keyboard issues... cleaning the flex cable and the connector solved the issue in those cases.
If that doesn't help, you can try another keyboard or a usb keyboard, if both don't work then the issue is either the keyboard connector or the mainboard is failing, which isn't uncommon for acer, I have a 3000 series laptop that has the same problem - keyboard doesn't work, usb doesn't work either.
Outside of warranty are you?
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