This is how it works:
After successful identity verification, ADSelfService Plus resets the user password using a randomly generated temporary password.
ADSelfService Plus now attempts to change the temporary password (old password) of the user account using the user provided password (new password).
Active Directory performs the password history check for the user provided password since it is a change password operation.
Note: To make this feature work, you need disable the user cannot change password option in Active Directory.
Here's how you can enable it: