How to disable the Secure Keyboard Entry

Use secure keyboard entry in Terminal on Mac - Apple Support (MZ)

1. Go to the Terminal app  on your Mac.
2. Choose Terminal > Secure Keyboard Entry.

A checkmark next to Secure Keyboard Entry in the menu lets you know it’s turned on.

Update your macOS to 13.7.1, the latest version of Ventura.

Update macOS on Mac - Apple Support

And if you are running any anti-virus, cleaning, optimizing or vpn software, disable it or uninstall it. Apps of these types very often conflict with the normal performance of the OS. Shut them down