If 10% of customers have passwords that now can't log in and submit orders, that would be an emergency.
We're taking OP's word for it that FedEx doesn't allow certain characters as passwords (actually, from the description, it seems more like FedEx only allows specific characters which is even worse). If either of those are true, it is most certainly a defect. Whether FedEx treats that defect as an emergency is up to them I guess. I'm saying many modern companies would.
You originally said "Weird password issues don't count as broke." I think this might just be a case where we have to "agree to disagree".