fix: remove panic() and relay password hashing errors to UI

[eternal-flame-AD]

Fixes #1013

[codecov]

Codecov Report

❌ Patch coverage is 58.97436% with 16 lines in your changes missing coverage. Please review.
✅ Project coverage is 74.28%. Comparing base (d543a8a) to head (75bc19c).
⚠️ Report is 1 commits behind head on master.

Files with missing lines	Patch %	Lines
api/user.go	50.00%	8 Missing and 4 partials ⚠️
auth/password/password.go	75.00%	1 Missing and 1 partial ⚠️
database/database.go	50.00%	1 Missing and 1 partial ⚠️

Additional details and impacted files

@@            Coverage Diff             @@
##           master    #1014      +/-   ##
==========================================
- Coverage   74.53%   74.28%   -0.25%     
==========================================
  Files          66       66              
  Lines        3483     3512      +29     
==========================================
+ Hits         2596     2609      +13     
- Misses        688      698      +10     
- Partials      199      205       +6     

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