I was saying what is true and still is.
There is no way for them to know the length of your password in a hashed form. The explanation also makes no sense because the hashing algorithm will just truncate the rest of the chars, if for example it has an input limit (which im not sure which one does other then the old 3DES from the htpasswd days) it just truncates the rest.
For example, if you try to hash a password "12345678901234567890" but it has a limit of 16 input chars, it will hash only first 16 and you can log in with "1234567890123456gjflsagjfksalfjdsaklfjdsaklfjdsak lfsa" if you want, because it will only check for the first 16 chars.
Regarding the email, only other thing that could prompt this is if their input form on website now has a limit of max 16 chars, but it was not like that before. So they have your password hashed with >16 chars, and if you tried to login with the >16 chars password now, the input form would truncate it and send it truncated to the database, which obviously would produce a different hash now then the one stored already in the database and you would not be able to log in.
So yea, they can't know the length of your pass when its hashed.
Ofc, this is if they are hashing them and not storing plaintext