I was experiencing this issue, today, on a “new” iphone 12 mini, specifically, logging into the iOS app. I tried removing and re-installing the app, deauthorizing sessions, restarting the phone, all to no avail. I entered and re-entered my master password several times, checking every character one at a time. I knew it was correct. Logging in on my desktop, other devices, or even Safari on the same phone worked.
Then I remembered that the last time I had failure to login problems was with an older phone, and was due to my Security → Keys → KDF Algorithm settings. I had switched to Argon2 a year or so before having any need to use this older phone (an iPhone 7). But it just wasn’t able to do the cryptographic calculations, so I lowered them until it worked. (mind you, my settings were still above the recommended lower limit for Argon2)
I thought I would try changing them again just for kicks, and I switched back to PBKDF2, logged out, and tried logging in again on the iPhone 12 mini, using the application. Success!
Then again for kicks, I switched back to Argon2 with lower settings, and it still worked. So I then started ratcheting the memory, iterations, and parallelism settings back up. It continued to work, even after returning memory to the setting I had before, and both iterations and parallelism to levels higher than before.
It doesn’t make sense, as this “new” iPhone 12 mini was a replacement for my previous 12 mini, and I didn’t have any problems on that phone logging into the application. Remember, the only reason I made changes to the cryptographic settings in the first place was to make logging in on an older phone possible. And they had been at those levels for quite some time, all working without problems.
The problem was just on this newer (yet still 5 year old phone). Go figure. This worked for me. I have no idea if this is related to the problem others are having. Good luck.