I've tried this on NM versions 1.0.2 and 1.0.6, with similar results.

I am adding a wifi AP connection to NM which uses WPA-PSK and provides an invalid password (less than 8 chars).  NM will hapily create this connection, though is should fail an give an appropriate reason.  Once created, bringing up the connection will ask for a password, because the given password fails the valid password check.  And the NM logs give no specific indication of why the password fails.

However, after adding the connection and then restarting NM, I do get this warning message in the NM logs: '<warn>  ifcfg-rh: loading "/
etc/sysconfig/network-scripts/ifcfg-wifi-ap" fails: Invalid WPA_PSK (passphrases
 must be between 8 and 63 characters long (inclusive))'

It would be nice to have that warning sent back as an error message in a failure response to the connection add with an invalid WPA password.

I'm not sure if this is specific to the ifcfg-rh plugin, which I'm using, or specific to wifi AP mode (as opposed to other modes).

Here is a python dictionary representation of the connection that is causing the bug:
{
     'connection': {'id': 'wifi-ap',
                    'type': '802-11-wireless',
                    'uuid': '<uuid>',
                    'gateway-ping-timeout': 0},
     '802-11-wireless': {'mode': 'ap',
                         'security': '802-11-wireless-security',
                         'ssid': 'eenbridge10000'},
     '802-11-wireless-security': {'key-mgmt': 'wpa-psk',
                                  'psk': '10000'},
     'ipv4': {'method': 'manual',
              'never-default': True,
              'addresses': [['10.137.0.1', '16', '0.0.0.0']],
     },
     'ipv6': {'method': 'ignore'},
}