Recently I accepted the new Exchange ActiveSync Policy in my Windows Mail account which disabled Picture Passwords and Pin Passwords for my Windows 8.1 Machine. I hunted high and low in Local Security Policy, Registry and Local Group Policy settings to try and resolve this issues with very little luck.
RESOLUTION
To resolve this problem I completed the following steps:
1. Click on Settings > Control Panel > User Accounts.
2. In the left hand side, there is an option to Reset Security Policies, as seen in the image below.
3. Reboot your computer.
After the machine has rebooting you should see your Sign-in Option button and the ability to choose the Picture Password or Pin Password again.
NOTE
As you have just changed the security policies which Exchange Active Sync had enforced, you may not be able to access the email which you had setup and applied the settings for.