Apple Passwords reliably updates passwords in its database before the password is confirmed to be actually changed. I've been locked out of accounts many times to this. They really need to focus on these basic UX issues.
At least on 26, the passwords app saves a history with previous passwords.
Does it at least store the old password for a while in some archive, like most competitors do?
Yep. I get anxious when Safari starts to offer a new password for an existing account. Having access to previous passwords would be such great UX, but no, no such thing.
1Password gives you access to previous passwords you had for that reason.
Unfortunately not for other fields like email, notes etc…
IMHO the perfect password app could just keep all previous versions of any field until the user deletes the history.