In the above example the forgotten password link is placed in the password field.
I'm curious, what, if any, are the user experience considerations that led the designers to do this?
Easier reference for responding.
It combines and reverses the typical user flow for "forgot password" if it functions in this way:
Valid email of registered user > invalid/new password > click "password reset" > verification email with link to confirm change
"forgot password" > enter email > email link to change password > enter new password > confirmation email
I'm not a user so this is not a verified flow, only speculation for using an uncommon UI pattern.
One other note for people looking at the image, the "order now" area looks like the active link, but it's used like a CTA on the full site. The client area is shaded when active.