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Signing into PSN now requires a device setup password rather than your standard account password.
The PlayStation Vita system software version 3.74, released on May 10, 2022, is the current official firmware for both the PS Vita and PlayStation TV. This update is essential for users who wish to maintain access to the PlayStation Network (PSN), including browsing the store and playing online. Key Features and Changes in 3.74 ps vita firmware 374 download new
You can no longer create new PSN accounts or manage certain account details directly on the console. These tasks must now be performed via a PC or mobile browser. Signing into PSN now requires a device setup