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Creating a password in 2023 be like
(programming.dev)
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"Password is already used by user
potatoeater420
, please choose a different password."Knowing that it's already in use is.
Basically all of these constraints are bad practice, though. It's obviously better to have a long, complex password, and not to reuse passwords between sites, but if you make shit impossible for people to remember they're going to write it down, and a lot of people don't use password managers (or use shared devices where they aren't possible).
Length limits (that aren't like 1000 characters) are unconditionally terrible practice. It means your password is probably plain text, because hashes don't really care or take meaningfully longer based on the length of the input.
A string of (random) words is a perfectly fine password. There's an xkcd I'm too lazy to get demonstrating it, but it genuinely does add enough randomness to break brute force.
Here's the xkcd.
The only security threat would be the site itself. How do they know other users have the same password?
Options:
They have your password in plain text in their DB. CHEFF KISS
They aren't using salts.
They are using the same salt for everyone.
All of them concerning.