Try opening the Keychain Access utility, and locking the keychain (click the lock icon on the top-left of the utility).
Adobe should add this to their advice on fixing issues on Mac OS, IMHO.
My experience below, —
I've used ADE successfully once (if a little confused by what it was trying to do), but now it has decided to bork itself. I’m on Mac OS, latest version.
Firstly, I dragged an .ACSM file to ADE. It asks for my password. I give it my password, the CORRECT password (I know it is correct), and it claims it is not correct. Well, that’s wrong. Anyway, it issues:
Trying to activate without an ID doesn't work either.
So what gives? I can't see any further help on the Abobe site, but there is this tip: E_AUTH_BAD_DEVICE_KEY - please help! The post is marked as not answered, but scroll down for the answer: basically what I wrote at the top, but with a nice screen cap.