You could go back to the job in Operations Manager that you created to invoke the "install" command and check the output there. There should be an error message if something failed.
You never use the element <encryptedPassword> yourself. When you set the password, or change it in the future, you replace the <encryptedPassword> element with <password> and provide the new password in clear text. Then run "validate" or stop/start MCTB. This will immediately rewrite the config file and replace the <password> element and clear text password with the <encryptedPassword> element and the encrypted password text.
Glad this was resolved. Let me me know if you have any further questions or problems.
Re: I loaded MCTB 2.2.2 and getting the following errors...