OK I now see what is happening. I commented out the "AuthInfoRequired"
line but I still get the problem. The issue is that the follow me line
still has the old password and it will not update it automatically after
prompted even when I click the "Remember Password" option.

That explains why it works when deleted. All entries are erased and
recreated when the new printer is created. But for whatever reason it
cannot update the password to an existing printer.

I think this is a serious bug that could affect the use of Ubuntu in
enterprise environments.

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https://bugs.launchpad.net/bugs/735297

Title:
  Can not print on an SMB shared printer after password change

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