Compromised passwords on laptop, Is it Safe to change using the same device?

OP wrote " if passwords app shows compromised passwords (duh..)and login info, "

The Apple " Passwords app " only made its' appearance in macOS 15 Sequoia

Have requested the question be moved accordingly

Most Online Websites like financial services and important institutions that I deal with

The have brought out their own form of a 2 Factor Authorization

In so doing, another Trusted Device comes into play

Where in, an email, sms / txt , phone call is sent to the Trusted Device with a 6 digit code that is Required to be input on the device being used to access their Secure Websites

The Password app in and of itself does not contain the Password used to log into the Device

So, based upon that as being factual and correct.

It would be safe to change website passwords from that device

Find saved passwords and passkeys on your Mac

Your password on your Mac wasn't compromised.

The password you used for some internet account was also used by many other people. Some database of passwords was compromised. It could have been your account password, or it could have been someone else's password that was the same as one you use.

The warning doesn't indicate at all that your account that used that password was compromised.

Your Mac was not the source of the password leak. If you think your Mac is somehow compromised, you should not use it for anything. But, since it isn’t, you should use it just as you always have.