My time capsule, 4th gen, does not have wpa-3 security protocol.
Do I need a firmware update because I do not have wpa-3 security protocol?
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WPA3 would require new hardware on the Time Capsule, in addition to new firmware. The same would be true even if you had the most recent "5th Gen" Time Capsule, which was discontinued in April 2018.
Bottom line......If you need WPA3, you will need to look for another router with that capability.
A 4th Gen Time Capsule is at least 7+ years old and as much as 9+ depending on when it was placed into service. The average useful life of the product is about 5 years, so you have done very well. At this point, both the power supply and the hard drive are "suspect" .