Did you add this line to htaccess?
RewriteRule ^moodle/.*$ - [PT]
The default forgotpassword link in Moodle is definitely login/forgotpassword.php (with /moodle before it if you have Moodle in a sub-directory), so if it’s telling you that the page isn't redirecting properly, it’s strengthening the argument that it’s htaccess or https server redirect related rather than anything else.