MBP 2017 | Battery | Service Recommended notification

My MBP was all good and functioning normally, however, after updating to Big Sur, I noticed the service recommended notification. I ignored it, and now, the MB shuts down when it has 11% charge, and when I try to turn it on, it is asking to connect to a charger. The battery percentage fluctuates unevenly.

The battery cycle count is 525 and FCC is 3427 mAh.

Tried resetting the SMC, NVRam, and yet not fixed. I saw a lot of posts talking about battery issue with the Big Sur, but I am unsure what is the main cause.

Does this mean that, I will have to replace my battery?