There are two types of accounts that can be used to sign in to a computer using the Windows 8 operating system: a Microsoft account or a Local user account. If the computer has been set up to use a Microsoft account, the Create a password reset disk option in the in User settings screen becomes hidden. This is by design. The Create a password reset disk option will only be present when the computer has been set up to use a Local user account.
The reason that option is hidden when using a Microsoft account is because you can reset the password online on the Microsoft account sign-in web page at https://account.live.com/password/reset. This is the method preferred by Microsoft for resetting password when using a Microsoft account because it helps to avoid account login and password conflicts with other online accounts.
If you wish to access the Create a password reset disk option, follow the appropriate link below to switch to using a Local account: