I have users that cannot log in after creating an account. After they type the user name and password the page just refreshes and asks for them to login again. I Assume that this is because of the Application Passwords as shown in the screenshot attached. Is there any way that I can fix his?
Register/login/emails are handled 100% by Wordpress core. Not wpForo. wpForo just provides a "form" for easiness and also queues all email to Wordpress.
Not related to wpForo. Also your issue is also not related to app passwords.