Strange reset passcode popup

I was playing around with the Apple Wallet app, trying to add a new card in and after scanning, the app took a very long time to process and then a strange popup (see attached picture) appears saying something along the line of "Unknown" or 0 account needs a passcode reset and the only option for me to click on is reset (I can't close it nor swipe up to go to home screen). After clicking on reset, It asked for my current passcode but I don't know what this is for because I have a different password for everything I use. After trying a bunch of different passwords related to Apple services, nothing has worked. I was locked out of my phone and the only thing I could do was emergency calling and using the camera app. Face ID still works though but after unlocking my phone, I'm stuck at that popup agai. I was able to fix it by going to emergency call and then restart my phone (if I don't go to emergency call first, the popup actually prevents me from swiping right to turn off my phone). So my question did my phone get "hacked" or that was just a glitch? I need to make sure I didn't send a bunch of my different passwords to hackers.