I've seen this more than two times, there is a bug in it. Apple software reached to new level.

I use latest app and ios version.

it was doing the same to me in 26.2 , to the point where I’d pause and reveal any passwords it just generated then copy and paste them into a note before proceeding.

Not sure if it’s fixed in 26.4 because I don’t trust their updates anymore every one just makes the phone worse or deploys some new oppressive age app or identity verification scheme to lick another nation-states jackboots.