When an old password on a file that no longer needs protecting becomes just an annoyance
Removing a password entirely is worth doing once a file no longer holds anything sensitive but typing a password every time it opens has become tiresome -- clearing it out allows free access going forward.
This removes the password needed to open the file, not a sheet's edit lock
Excel actually supports a few separate protections: a password required just to open the file at all, a read-only recommendation that anyone can dismiss, and a completely separate lock on editing within a specific worksheet. Clearing the password from Protect Workbook only removes the first kind -- the barrier at opening the file -- and has no effect on any separate protection set on an individual sheet.
Frequently Asked Questions
What if the current password is not remembered?
This first step cannot be completed without it, since the file must already be opened with its existing password before it can be removed. There is no reliable way to recover a forgotten one, so storing passwords somewhere safe matters.
Will this also remove a "recommended read-only" setting?
No -- "Recommend Read-Only" under the same Protect Workbook menu is a separate, dismissible setting, and clearing the open password does not turn it off if it was enabled too.