iPhone Hotspot connection

The laptop is remembering the settings of the hotspot network that it previously used and it applies those same "old" settings when you try to connect. It does not know that you have really in effect set up a "new" network.....because the name of network did not change.

You need to delete those "old" settings and then set up a new hotspot connection on the laptop.

Click System Settings > Network > Wi-Fi on left panel

Click Advanced at the lower right of the window

Click on the name of the "old" hotspot network to highlight it, then click the - (minus) button at the bottom of the list

Click OK

Click Apply in the next window that appears

Close the windows

Restart the Mac

Select the hotspot network and try to log on again using the password

My IPhone shows its not connected to the internet

Whoa. Hotspot is never going to work if the iPhone is not connected to the Internet.

Turn off the hotspot

Power off the iPhone

Start the iPhone back up and connect via cellular to your carrier

Can the iPhone connect to the Internet that way if you open Safari, check email, etc?

If yes, turn Hotspot back on and try to connect with the laptop.

If no luck, you will have to go back to the way things were before you changed or added a password and get the laptop working that way.