This is a scam.
Your password has been exposed in a server breach. Which is why two-factor authentication and unique passwords are preferred. You’ll want to start using unique passwords.
But this is also an indication that your credentials will be “crammed” everywhere. Which means you can lose control of some of your logins. And enable two-factor and set up and maintain your trusted telephone numbers, if that’s not already in place.
Losing your Apple ID is a huge mess, as can be some losing some other logins.
One of mine got picked off a while back, and through a series of mergers that login ended up being at a vendor I hadn’t realized I’d even had a login at, and that login got “crammed”. (Which made the password-reset notice a real surprise. That vendor at least had a real password recovery mechanism. Not all do.)
Other shared passwords may be being “crammed” without these thoughtful email notices, unfortunately.