iPhone Passwords app not updating Apple ID password

What’s really happening

• Changing your Apple ID password in Settings updates the password on Apple’s servers immediately. That’s the “real” account credential.
• The Passwords app (iCloud Keychain) is just a saved login record — essentially a stored credential, like a notebook entry.
• That saved entry doesn’t automatically rewrite itself when you change your password. It only updates when you interact with a login flow that triggers Safari or iOS to ask: “Do you want to update this saved password?”

Typical flow

• After you change your Apple ID password in Settings…
• The next time you sign in at appleid.apple.com or iCloud.com in Safari,
• Safari recognizes the mismatch between the stored credential and the new one you just typed.
• It prompts: “Update saved password?”
• If you tap Update, the Passwords app entry is refreshed with the new password.
• If you skip it, the old password remains saved, and you’ll see the mismatch until you manually edit it.

The Passwords app doesn’t “sync” the Apple ID password change automatically — it waits for a login event to trigger an update prompt. That’s why signing in via Safari (or any app/site that uses your Apple ID) is the practical way to refresh the saved entry.