The user1 password is expired. This can be inferred from the output of the chage -l user1 command, which shows the password expiration information for user1. The output shows that the password expired on 2020-10-01, and the account expired on 2020-10-08. This means that user1 cannot log in to the server unless the password and account are reactivated by the system administrator.

The other options are not correct based on the outputs above. User1 does not need to set a long password, because the output of the passwd -S user1 command shows that the password has a minimum length of 5 characters, which is met by user1’s password. User1 is not in the incorrect group, because the output of the groups user1 command shows that user1 belongs to the app group, which is presumably the correct group for accessing the server. The user1 shell assignment is not incorrect, because the output of the grep user1 /etc/passwd command shows that user1 has /bin/bash as the default shell, which is a valid and common shell for Linux users.