I had the same issue and I followed this steps and they worked, I was able to Unlock it and root it as well.
---------- Post added at 03:24 PM ---------- Previous post was at 03:22 PM ----------
I have followed the exact steps given on the Motorola website about unlocking the bootloader.
I use XT1033 model(dual sim - India) running Android 4.4.4.
When trying to unlock bootloader, I keep getting the error: <password incorrect> <remote failure>
I have copy pasted the "unlock code" motorola had sent me, and also used the fastboot command:
fastboot oem unlock <my_secret_alphanumeric_20_digit_key
Thanks in advance.