I had the same issue, I followed the steps on to update to auth: and I was unable to get HA working, it would hang. I would only get some error related to auth and that was the end of the log and no more frontend. I had to move everything to http: component and power cycle my rpi.
For 89.2 forward, remove auth configuration from http:. Configure under homeassistant with auth_providers:. legacy_api_password is rapidly being phased out.
Exactly, but maybe the network part trigerred something unexpectedly.
But even if I created the above and the api_password being phased out, then I would end up with nothing - so maybe I will just continue without this.