LOGON PASSWORDPREPROMPT(ON) works well with TSS r16.0 and not so well with TSS r15.0.
We've implemented it with z/OS 2.2 and it works with TSS r16.0.
To have it "working" with TSS r15.0 we had to set the TSO facility in DORM mode, but acids still ran in FAIL mode.
So it doesn't really work with TSS r15.0, but at least allows to go back and forth without changing IKJTSOxx member and offers some kind of flexibility for testing.
Obviously, if you enter a wrong password, you will be denied to access to TSO after going thru the TSO/E Logon panel.
So, you have to run Top Secret r16.0 to support this.