Password app asking to setup verification code

Today I woke to find this new iPad Air M3 asking me to setup a verification code on an app in the password screen. The screen will only let me setup some code or key which I do not want as I have Touch ID set everywhere. The problem is, if I don’t set it up the system does not allow me to leave that screen unless I accept. The message says even though the setup password already is a secure. What I want to know is how to stop this request so that I can get back into the passwords. Any help will be greatly appreciated.