diff --git a/l10n/messages.pot b/l10n/messages.pot
index 58522f57..3edd97a7 100644
--- a/l10n/messages.pot
+++ b/l10n/messages.pot
@@ -21,8 +21,5 @@ msgstr ""
 msgid "This action needs authentication, please confirm it by entering your password."
 msgstr ""
 
-msgid "Unknown error while checking password"
-msgstr ""
-
 msgid "Wrong password"
 msgstr ""
diff --git a/src/apiError.spec.ts b/src/apiError.spec.ts
new file mode 100644
index 00000000..4059b26b
--- /dev/null
+++ b/src/apiError.spec.ts
@@ -0,0 +1,93 @@
+/*!
+ * SPDX-FileCopyrightText: 2026 Nextcloud GmbH and Nextcloud contributors
+ * SPDX-License-Identifier: MIT
+ */
+
+import { beforeEach, describe, expect, test, vi } from 'vitest'
+
+const isAxiosErrorMock = vi.fn()
+const loggerDebugMock = vi.fn()
+
+vi.mock('@nextcloud/axios', () => ({
+	isAxiosError: isAxiosErrorMock,
+}))
+
+vi.mock('./utils/logger.ts', () => ({
+	logger: {
+		debug: loggerDebugMock,
+	},
+}))
+
+describe('isConfirmationError', () => {
+	beforeEach(() => {
+		vi.resetModules()
+		vi.clearAllMocks()
+		window._oc_config = undefined
+	})
+
+	async function importSubject(version?: string) {
+		window._oc_config = version ? { version } : undefined
+		return import('./apiError.ts')
+	}
+
+	test('returns false for non axios errors', async () => {
+		const { isConfirmationError } = await importSubject('33.0.0')
+		isAxiosErrorMock.mockReturnValue(false)
+
+		expect(isConfirmationError(new Error('nope'))).toBe(false)
+		expect(loggerDebugMock).not.toBeCalled()
+	})
+
+	test('returns false when axios error has no response', async () => {
+		const { isConfirmationError } = await importSubject('33.0.0')
+		isAxiosErrorMock.mockReturnValue(true)
+
+		expect(isConfirmationError({ response: undefined })).toBe(false)
+		expect(loggerDebugMock).not.toBeCalled()
+	})
+
+	test('uses header based detection on Nextcloud 32', async () => {
+		const { isConfirmationError } = await importSubject('32.0.7')
+		isAxiosErrorMock.mockReturnValue(true)
+
+		const error = {
+			response: {
+				headers: {
+					'x-nextcloud-password-confirmation': 'true',
+				},
+				status: 403,
+			},
+		}
+
+		expect(isConfirmationError(error)).toBe(true)
+		expect(loggerDebugMock).toBeCalledWith('Handle modern confirmation error based on header', { hasConfirmationHeader: true })
+	})
+
+	test('returns false if header is not present on Nextcloud 32', async () => {
+		const { isConfirmationError } = await importSubject('32.0.7')
+		isAxiosErrorMock.mockReturnValue(true)
+
+		const error = {
+			response: {
+				status: 403,
+			},
+		}
+
+		expect(isConfirmationError(error)).toBe(false)
+		expect(loggerDebugMock).toBeCalledWith('Handle modern confirmation error based on header', { hasConfirmationHeader: false })
+	})
+
+	test('uses status based detection on Nextcloud 31', async () => {
+		const { isConfirmationError } = await importSubject('31.0.8')
+		isAxiosErrorMock.mockReturnValue(true)
+
+		const error = {
+			response: {
+				status: 403,
+			},
+		}
+
+		expect(isConfirmationError(error)).toBe(true)
+		expect(loggerDebugMock).toBeCalledWith('Handle legacy confirmation error based on status code', { status: 403 })
+	})
+})
diff --git a/src/apiError.ts b/src/apiError.ts
new file mode 100644
index 00000000..6062357d
--- /dev/null
+++ b/src/apiError.ts
@@ -0,0 +1,30 @@
+/*!
+ * SPDX-FileCopyrightText: 2026 Nextcloud GmbH and Nextcloud contributors
+ * SPDX-License-Identifier: MIT
+ */
+
+import { isAxiosError } from '@nextcloud/axios'
+import { logger } from './utils/logger.ts'
+
+const [NC_MAJOR_VERSION] = window._oc_config?.version.split('.').map(Number) ?? []
+
+/**
+ * Check if the given error is a confirmation error,
+ * which means that the password was incorrect.
+ *
+ * @param error - The error to check
+ */
+export function isConfirmationError(error: unknown): boolean {
+	if (!isAxiosError(error) || !error.response) {
+		return false
+	}
+
+	const hasConfirmationHeader = error.response.headers?.['x-nextcloud-password-confirmation'] === 'true'
+	if (NC_MAJOR_VERSION < 32) {
+		logger.debug('Handle legacy confirmation error based on status code', { status: error.response.status })
+		return error.response.status === 403
+	}
+
+	logger.debug('Handle modern confirmation error based on header', { hasConfirmationHeader })
+	return hasConfirmationHeader
+}
diff --git a/src/components/PasswordDialog.vue b/src/components/PasswordDialog.vue
index 090acb3e..0f66a781 100644
--- a/src/components/PasswordDialog.vue
+++ b/src/components/PasswordDialog.vue
@@ -4,10 +4,10 @@
  -->
 
 <script setup lang="ts">
-import { isAxiosError } from '@nextcloud/axios'
 import { computed, nextTick, onMounted, ref, useTemplateRef } from 'vue'
 import NcDialog from '@nextcloud/vue/components/NcDialog'
 import NcPasswordField from '@nextcloud/vue/components/NcPasswordField'
+import { isConfirmationError } from '../apiError.ts'
 import { t } from '../utils/l10n.js'
 import { logger } from '../utils/logger.js'
 
@@ -30,7 +30,7 @@ const passwordInput = useTemplateRef('field')
 
 const password = ref('')
 const loading = ref(false)
-const hasError = ref<boolean | 403>(false)
+const hasError = ref<boolean>(false)
 
 const buttons: DialogButtons = [{
 	label: t('Confirm'),
@@ -40,23 +40,18 @@ const buttons: DialogButtons = [{
 }]
 
 const helperText = computed(() => {
-	if (hasError.value !== false) {
-		if (password.value === '') {
-			return t('Please enter your password')
-		}
-
-		switch (hasError.value) {
-			case true:
-				return t('Unknown error while checking password')
-			case 403:
-				return t('Wrong password')
-		}
+	if (hasError.value) {
+		return t('Wrong password')
 	}
 
 	if (loading.value) {
 		return t('Checking password …') // TRANSLATORS: This is a status message, shown when the system is checking the users password
 	}
 
+	if (password.value === '') {
+		return t('Please enter your password')
+	}
+
 	return ''
 })
 
@@ -75,20 +70,19 @@ async function callback(): Promise<boolean> {
 	try {
 		await props.validate(password.value)
 		emit('close', true)
-		return true
 	} catch (error) {
-		if (isAxiosError(error) && error.response?.status === 403) {
-			hasError.value = 403
-		} else {
+		if (isConfirmationError(error)) {
 			hasError.value = true
+			logger.error('Exception during password confirmation', { error })
+			selectPasswordField()
+			return false
 		}
-
-		logger.error('Exception during password confirmation', { error })
-		selectPasswordField()
-		return false
+		hasError.value = true
+		emit('close', false)
 	} finally {
 		loading.value = false
 	}
+	return true
 }
 
 /**
diff --git a/src/env.d.ts b/src/env.d.ts
index 5407031b..569093d5 100644
--- a/src/env.d.ts
+++ b/src/env.d.ts
@@ -8,6 +8,10 @@ declare global {
 		nc_pageLoad: number
 		nc_lastLogin: number
 		backendAllowsPasswordConfirmation: boolean
+
+		_oc_config?: {
+			version: string
+		}
 	}
 
 	const __TRANSLATIONS__: Array<{ locale: string, translations: { msgid: string, msgid_plural?: string, msgstr: string[] }[] }>
diff --git a/src/password-confirmation.ts b/src/password-confirmation.ts
index 5ddd63a1..b1d3a69c 100644
--- a/src/password-confirmation.ts
+++ b/src/password-confirmation.ts
@@ -10,6 +10,7 @@ import axios from '@nextcloud/axios'
 import { generateUrl } from '@nextcloud/router'
 import { spawnDialog } from '@nextcloud/vue/functions/dialog'
 import PasswordDialogVue from './components/PasswordDialog.vue'
+import { isConfirmationError } from './apiError.ts'
 import { PwdConfirmationMode } from './globals.ts'
 import { isPasswordConfirmationRequired } from './is-required.ts'
 import { logger } from './utils/logger.ts'
@@ -104,7 +105,7 @@ export function addPasswordConfirmationInterceptors(axios: AxiosInstance): void
 			return config
 		}
 
-		const { promise, resolve } = Promise.withResolvers<InternalAxiosRequestConfig>()
+		const { promise, resolve, reject } = Promise.withResolvers<InternalAxiosRequestConfig>()
 		promptPassword(async (password: string) => {
 			switch (config.confirmPassword) {
 				case PwdConfirmationMode.Lax:
@@ -121,7 +122,7 @@ export function addPasswordConfirmationInterceptors(axios: AxiosInstance): void
 					resolve(config)
 					return validatePromise.promise
 			}
-		})
+		}).catch(reject)
 
 		return promise
 	})
@@ -155,11 +156,13 @@ export function addPasswordConfirmationInterceptors(axios: AxiosInstance): void
 
 			logger.debug('Password confirmation failed', { error })
 			validatePromise.reject(error)
-
-			// If the password confirmation failed, we trigger another request.
-			// that will go through the password confirmation flow again.
-			logger.debug('Triggering new request', { error })
-			return axios.request(error.config)
+			if (isConfirmationError(error)) {
+				// If the password confirmation failed, we trigger another request.
+				// that will go through the password confirmation flow again.
+				logger.debug('Triggering new request', { error })
+				return axios.request(error.config)
+			}
+			throw error
 		},
 	)
 }