When trying to connect to App Store Connect for a new project I'm getting this error:

Trying to add the account again also results in an error that the account already exists.
What could be wrong?
An additional error when trying to set up a new app specific password (although the previous one that was set was still valid):

I was able to completely remove the account and re-add it. Seems that it went through.
Perhaps there could be a better explanation of what is wrong, and hints on what to try in the interface. The errors were quite unhelpful.
@andreialecu Were you able to resolve the issue? If you see it again, please reach out to us via support.
I was able to resolve it by re-adding the account.
Would be a good idea to improve this flow though. Feel free to close.
Another solution: Click on your Avatar -> Account Settings -> Developer Accounts
There was a message noting "Invalid". Just click on it and re-connect your account.
The mis-leading error is still present as of today but thinking-twins solution works well (when clicking on Reconnect, the apple password is not requested, it's just an Apple re-authentication).
Most helpful comment
Another solution: Click on your Avatar -> Account Settings -> Developer Accounts
There was a message noting "Invalid". Just click on it and re-connect your account.