Also having this issue, iPhone 8 Plus, trying to use the hotspot with either a MacBook Pro running High Sierra or an iPad Air 2. Neither works.
Trying with the MBP, I get the dialog on the phone asking to share my hotspot. I say OK and then get a prompt on the Mac to enter the password. I then get an invalid password error (it's not invalid). I see the blue bar flashing a few times on the phone, like the Mac (or the iPad) is trying to connect, then it fails.
I'd suspect macOS, but the iPad is doing it too. And my hotspot was working fine before this.