In these PREVIEW mocks:
https://folio.googleplex.com/chrome-ux-specs-and-sources/Chrome%20Inner%20Pages/03-Settings/preview/cards#%2FPREVIEW-People-sync-settings.png%3Fz=width

When the wrong password is entered, the "Invalid Password" message is displayed in red above the field.

However, the standard paper-input displays the error message BELOW the text field.

Here is a fiddle that demonstrates:
https://jsfiddle.net/c5qjzqnb/1/