Password Recovery on Cisco SG500 Stack

We're trying to establish connection to the management login for a Cisco stack, however, the password we have for it doesn't work.  Therefore we've attempted to reset the password via the Cisco's "Password Recovery Procedure".  To get to this we are connecting to the serial console port on the back of the master switch, power cycling the switch and pressing escape in order to gain access the startup prompt:

Screenshot of primary prompt.
We then select option 3, however, at this point we only get a "Press Enter to Continue" message:

Screenshot of secondary prompt.
When you press enter it just goes back to the first prompt, it doesn't take you through any steps to reset or change the password or even provide you with a CLI to enter commands.

When looking in the manual for answers the only 2 pages that seem of relevance are p432, p579, however, I'm not entirely sure I understand the poultry information given on the process:

SG500 Manual

Any help or advise on how to achieve a password reset without wiping the config would be most appreciated.
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Password recovery can only be done on a master so check your LEDs to identify the master of the stack and connect to it. If you wish to connect to any other switch, disconnect the link cable and reboot, the switch should come up master and you can connect to it. If left in stack, power do all switches and power up only the master.

The option 3 makes the switch ignore your password for the current session so logging in with any password will work. The switch should finish booting and you should eventually reach a prompt where you can do the following :



(config)#username cisco password [new password]



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peterseychellesAuthor Commented:
The main problem I was facing was when disconnecting the primary the secondary switch was failing over and becoming the primary and thus the password change method wouldn't work on it.  Disconnecting the link cable and ensuring that the master switch was still indeed the master before attempting the process did the trick.

SylvainDrapeau instructions are bang on although the process is not completely obvious if you've never attempted it before.
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