Glad you were able to find a workaround. As far as configuration is concerned, if you followed the tutorial to the letter than you should be fine. It most likely relates to the way the older image was configured (based on your error, it looks like a conflict of resources, naming in particular). As you were finally able to login, you may want to have a look at Event Viewer for any possible logs..however Windows tends not to be so verbose as Linux when it comes to logs availability.
If you still create machines from the older image, the best way to change the password is by updating the metadata values for gce-initial-windows-user and gce-initial-windows-password as below. Once that is done, you can follow the upgrade process for the new authentication scheme.
gcloud compute instances add-metadata [INSTANCE_NAME] --project "[PROJECT_NAME]" --metadata gce-initial-windows-password=[NEW_PASSWORD]
gcloud compute instances add-metadata [INSTANCE_NAME] --project "[PROJECT_NAME]" --metadata gce-initial-windows-user=[NEW_USER]
My suggestion is to create a fresh image based on the newest image and move your data across from the old one, in order to completely bypass any issue that could arise from the upgrade.
One interesting aspect, did you happen to see multiple home directories when finally logged back in ? something like your_username and your_username.windows ? If so, this would suggest a Windows crash during the upgrade.
Thanks,
Marius