Unable to set up HomePod mini

Up until today my iPod mini worked fine. Today it stopped showing on airplay. I totally restarted it. Still no go. Removed from the home app and then tried to reinstate it. Followed all the steps in the setup including transferring settings from my iPhone. It then asked for my Apple/Cloud id. Entered the password correctly and got verification failed message as shown. Entire password using passwords file and Face ID - same result.

Any ideas?

[Edited by Moderator]

Original Title: unable to set up iPod mini