I have installed and am using macOS Monterey. It does have some initial problems, but I am sure Apple will squash some of them in the 12.1 update soon. Meanwhile, I am using some nice new features. One of those is the Passwords System Preference Pane. Passwords have been moved from the Safari web browser out into the System for a more general use. Here is what that looks like.
Albeit, most of your stored passwords are for websites online, there are some things you may need to store on your Mac that do not involve online activity. It is nice to not have to go into Safari to store a password now, you can do it in the Passwords Preference.
To take a look at Passwords, just click on the System Preference Pane.
The next window is the login.
Here is the main window with some entries in it.
The main window area is the same as when it was in Safari, and it works the same as well. There is nothing new there, just that it is separated from Safari and in the open in the System Preferences.
When you click on an entry, you get the similar password information window.
You can click on the website login link to enter the password in question.
There is not much new with the actual Password interworking. The fact that it is separate from Safari and in the System Preferences is a good thing going forward.