New Apple ID password not syncing in Passwords app

Excuse the fact that I’m completely useless when it comes to tech stuff and jargon so apologies if this question is ridiculous.

I recently had to change my Apple ID password because the old one stopped working. But my new one is not syncing in the passwords app. (I’ve turned my phone off and on but this didn’t make a difference) A suggestion online was to sign out of my Apple account but when I clicked on the sign out link, I got a prompt that I would lose all of my data- so I haven’t gone any further.

what might be the problem? All updates have been made.