This is totally amazing! Wondering if it would be possible to go the other way around: from generated JPG to a string. If yes, what a cool way to send your password as a... JPG over email.
All the fuzzer is doing is exploring the possible codepaths through the application trying to exercise all the code; many of the codepaths end up with the executable outputting an error message and terminating. Some maybe put it into an infinite loop. Some end up with it completing a JPEG data parse and terminating - so in amongst all the possible paths it explores, of course it will eventually seek out input sequences which bring that about.
If it's not, better attacks exist than trying every single password.
If you're trying to crack the application - not the password - maybe, but I kinda doubt it.