It is. They use your OS keychain for encryption. This is your user profile and password combination. Simply changing the password shouldn’t be enough to cause issues.
Your problem is that you force changed your information. Like you said, you couldn’t provide the details your OS wanted from you to change the password. So instead you created a new account and tried to change the password from there. Brave would have no idea of knowing that this isn’t a hacker or someone trying to steal your info. If you had purely done a password change from your account, you wouldn’t have had a problem. Just to give you a quote from someone at Brave: