Greetings Demianeen,
If you're being asked to update Apple ID settings, it sounds like you're being prompted to update the password for your Apple ID. (This is usually different than the password used for the Mac user login information.)
Check out this link to learn how to Change your Apple ID password - Apple Support. Since you're using a Mac, you'll follow these steps:
Change your Apple ID password on your Mac
1. Choose Apple menu > System Settings (or System Preferences), then select your name (or Apple ID).
2. Select Password & Security.
3. Select Change Password. Before you can reset your Apple ID password, you'll be required to enter the password used to unlock your Mac.
If you need help with changing the Mac password for your user, you can look over and follow the steps here on this page: Reset your Mac login password.
We hope this information helps you with resetting the password that the Mac is prompting you to change.
Best wishes!