It's like they realized that emojis really shouldn't need to deal with color and gender.
It seems paramount that the OS should not allow password input of any characters which it theater takes away. At the very minimum if this is absolutely necessary to make this breaking change, the user should be warned several times that a character in the password is no longer valid and maybe even prevent the OS from upgrading before the password is changed to a forward-compatible one.
That's just excuses for moronic decisions of trillion dollar companies.
But there is already a known pattern on how to handle this which I was taught (before the original iPhone even) in university CS studies:
If the manner of entering credentials has to change,
Then on first entry, offer the old method,
And, because you now (temporarily) have the plaintext credentials, you can now inspect it and test if anything need to change for the future,
And then set a flag, or require user action , or just re-encode, to use the new method as inspection determines.