iPhone says wifi password incorrect when it isn't - Fix
I had this problem with an iPhone and a new wifi hub.
I solved the problem by switching off the 5 GHz channel on the wifi hub (it was on 2.4 or 5 GHz).
My speculation is that the 5GHz signal wasn't really strong enough/had too much interference to work despite the phone showing 4/5 bars of wifi (and that the iPhone is giving a bad error message).
Anyhow, it has been fine since.
Writing this because I saw that this has been an on-going problem annd searching the forums hadn't shown me a good answer.
iPhone SE, iOS 16