How to reset password that I have set up for 1 note in the notes app? I have tried settings and reset there does not work. It used to let me just use face ID to access it.

Unfortunately no.

There is the ability to lock w/ your device’s passcode, but if a custom password is used …

… there isn’t a reset, there isn’t a workaround.

Ref:

How to lock or unlock notes on your iPhone or iPad – Apple Support (AU)

FaceID only temporarily opens notes as a convenience, but you still need to know and occasionally re-enter the password.

(Much the same way that you must occasionally re-enter your device’s passcode)

Until you successfully enter the note’s password, the note will remain inaccessible.

There is no “failed attempt” lockout, so you’re free to keep on trying.

Also, after a few failed attempts, a “view hint” option will become available, IF a hint was set.

You’re welcome.

FWIW, Apple takes security quite seriously.

As ONLY the authenticated user can see notes on a Trusted Device to begin with …

… it would make no sense for Apple to be able to bypass any “over-and-above” security safeguard(s) which the user deemed necessary to add.