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The special user which runs the apps on this host, doesn't have the proper TTY rights when I sudo to it. So, gpg being unable to show the TTY GUI, just fails without giving the real reason. In order to be able to do this I had to exit my navsrv sudo session, and make the following call:chmod o+rw 'tty' && sudo -i -u navsrv gpg --edit-key 8267977F
Next, I entered the navsrv login password. Then, at the gpg command prompt, when I did "passwd", I got the Enter Passphrase GUI.