Hi Raj,
setup-passwords uses the bootstrap password in order to set the password for the users. After you set a password for the elastic user, the bootstrap password is no longer active and this is why you get the second error
ERROR: Failed to verify bootstrap password.
Were you able to login with either kibana or logstash_system users and their auto-generated passwords ?
Now, if you don't remember the original password for elastic that setup-passwords created, or if you in any case need to reset it to something new, you can follow the instructions that @TimV has shared in this answer