Use Smart Lock preference instead of Chrome Password manager preference.

chrome/test/data/policy/policy_test_cases.json

 {
   "-- Template --": {
     "intro": "Top-level entries map a policy name to its test parameters, described below. The name of the top level entry should be of the form <policy name>[.suffix]. The optional suffix is used for defining multiple test cases for a single policy.",
 
     "os": ["List of operating systems that support this policy. Valid values:", "win", "linux", "mac", "chromeos", "android", "Defaults to empty if not specified."],
     "official_only": "Whether this policy exists in official builds only. Defaults to |false| if not specified.",
     "can_be_recommended": "Whether a recommended value may be set for the policy. Defaults to |false| if not specified.",
     "test_policy": "A policy dictionary that should make the preferences affected by this policy become policy-controlled. Usually just sets the current policy. Defaults to an empty dictionary if not specified.",
     "note": "If the policy affects any preferences, the following array should be specified with one entry per such preference.",
     "pref_mappings": [
@@ skipping 344 matching lines @@
         "local_state": true
       }
     ]
   },
 
   "PasswordManagerEnabled": {
     "os": ["win", "linux", "mac", "chromeos"],
     "can_be_recommended": true,
     "test_policy": { "PasswordManagerEnabled": false },
     "pref_mappings": [
-      { "pref": "profile.password_manager_enabled",
+      { "pref": "credentials_enable_service",
         "indicator_tests": [
           { "policy": { "PasswordManagerEnabled": false } }
         ]
       }
     ]
   },
 
   "PasswordManagerAllowShowPasswords": {
     "note": "This policy is retired, see http://crbug.com/598698."
   },
@@ skipping 2667 matching lines @@
 
   "AdditionalLaunchParameters": {
   },
 
   "SuppressChromeFrameTurndownPrompt": {
   },
 
   "SkipMetadataCheck": {
   }
 }