Since people mentioned being really oddly asked for their phone lock code it occurred to me to look at my phone and I discovered that my iPhone also had a Keychain toggle-off glitch in addition to the obvious one on my iMac. And the iPhone was even less cooperative than the iMac at pretending to fix it. It would spin up - then present no new screens and just pretend nothing had happened and stay off.
What I did - and which has seemingly been stable for the past hour - was first fix the iPhone by signing out of iCloud and then back in. A big hassle. Lots of requests for passwords. Had to reactivate the credit cards. Ugh. But Keychain did toggle on.
Then I tried toggling on Keychain on the iMac. After a few attempts, I got it to stay toggled - which, as we know, is not the real challenge, since after a few minutes, it may switch itself off again.
So I took the insane risk of toggling it off myself, and going through that whole procedure.
Then I toggled it back on. And weirdly, did indeed get asked for my phone lock code.
Now both both phone and computer are displaying normal Keychains and have for the past hour.
No guarantee this will last. Any unnecessary magical-thinking steps in this and mistaking good luck for causation? Oh, you bet!
Odd side issue - the iPad never had a problem.
Question of the day: if the iPhone is supposed to be so amazingly secure why and how is Apple asking for its lock code to be sent around outside the device?
Truly all this seems so much like a really elaborate phishing charade to collect all codes that I hesitated to continue. And yet it dug so deeply into the devices and into a very secure app like Keychain and so many knowledgable people were experiencing it I decided it had to be a really, really strangely broken Apple issue. Indeed, I don't think I've seen any other half as weird.
Did try Apple Support first. The agent was very nice, decided he needed escalated advice, apologized many times that things seemed to be really...busy...at Apple Central. And after a half hour or so, I gave up. One wonders how many broken keychains and other updating issues Apple is trying to cope with today.