This is why using same password for everything is not good

[bitmover]

If database of the service A leaks, you will expose the password for all other services  B, C ,D, E, F and G as well.

That's the assumption, that's why it is recommended to have different passwords. But technically, websites especially newly created ones have standard way of hashing passwords like Bcrypt or Argon2i which cannot be decrypted or what you ever call it. But let's just assume that's that for safer routes and practice security when creating passwords.

Yeah, hashing passwords is the best practice. But many websites do not follow the best security practices (and we often create accounts in poorly developed websites), and passwords do leak. Even some password managers find a way to leak passwords, unfortunately....

[CryptoYar]

This story is worst type of Secret HODLer's nightmare. So it is not that funny when you realise that Kunle's 1 BTC is now public asset of his house. Once that sibling cried out, privacy that Delin had enjoyed over his investment was gone and never coming back. It is cold reminder that in Bitcoin world the places in real world are just as perilous as hacker or phishing link.

Problem here was not using same password, but combination of this with the False Sense of Security as people who have lived in comfortable environment. You do not act on your guard when you are under your parents roof and that is when Murphy's Law strikes the most. Kunle now finds himself in Financial Trap.’ He cannot spend BTC on school fees otherwise his future is ruined, and he cannot if he does not spend it on them, he appears villain before his family.

[As-Soon-As]

It is not advisable to give the hardware wallet password in line with the phone password. Since its younger brother has opened the hardware wallet password by guessing the phone password, the privacy of this Bitcoin has been leaked.
Therefore, if someone is using multiple wallets and has deposited Bitcoin, he should definitely use different passwords, because all the eggs should not be kept in one pair. Because the stronger the password, the more your Bitcoin will be safe and secure for a long time.

[TastyChillySauce00]

Never ever use the same password for your phone on your crypto wallet or hardware wallet.

It should be the default practice for people, there are billions password combination leaked by hackers and some of them could be ours, if hackers are brute forcing with those leaked passwords our account might get compromised.
The best way to do this is to generate random password for every account and write it down especially if it's a hardware wallet. It's good that this story doesn't end in misery, imagine if the brother sold his bitcoin .