When I am asked to type in my password, it is impossible to type. Whatever key I strike nothing happens. So I cannot make any changes to files which I need administrative rights for. The regular automatic updates are OK. I can type in my password and all is done for me. I have the newest version of Ubuntu and let all the updates be done.
Terminal does not need a password for anything, and hence it will never ask you for a password. You are most probably talking about an admin tool like sudo or a remote access tool like ssh. Nevertheless, this one is INVALID. File a bug report to the appropriate software component or ask on an Ubuntu mailinglist.