Late to provide a solution, but here is the solution for future reference and for those who prefer not to maintain separate user accounts.
When using the Hestia App Installer to install WordPress, it adds a must-use plugin. If you go to the plugins page and click “Must-Use” you will see a plugin for WP Password bcrypt you need to delete that.
Unfortunately, you cannot delete it from the WordPress UI. You will need to do it either using FTP, File manager, or any other way you add/delete files. It is a single PHP file and is located in the WordPress directory under wp-content/mu-plugins.
Hestia developers, you may want to consider removing that from the setup script. Starting from WordPress 6.8, bcrypt is the default hash method. Even the GitHub plugin repository has been archived for this same reason.
Hope this helps anyone else.
