ncs v2.6.1 not detecting incorrect password of wifi

Hey
I was working on starting sample code of wifi in ncs v2.6.1. When I added the correct ssid but wrong password in the prj.conf to check the status of the connection failure, after 5sec of being stuck in 4-WAY HANDSHAKE it shows "connected" and the status value also "0" and this happened when I entered the wrong password
Why is that? Is it something related to the ncs version?
Sharing the logs for reference

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*** Booting nRF Connect SDK v3.5.99-ncs1-1 ***
[00:00:00.443,115] <inf> net_config: Initializing network
[00:00:00.443,115] <inf> net_config: Waiting interface 1 (0x200014d0) to be up...
[00:00:00.443,237] <inf> net_config: IPv4 address: 192.168.1.99
[00:00:00.443,298] <inf> net_config: Running dhcpv4 client...
[00:00:00.443,542] <inf> sta: Starting nrf7002dk_nrf5340_cpuapp with CPU frequency: 64 MHz
112[00:00:01.443,634] <inf> sta: QSPI Encryption disabled
[00:00:01.443,695] <inf> sta: Static IP address (overridable): 192.168.1.99/255.255.255.0 -> 192.168.1.1
[00:00:03.003,662] <inf> sta: Connection requested
[00:00:03.003,723] <inf> sta: ==================
[00:00:03.003,753] <inf> sta: State: SCANNING
[00:00:03.303,863] <inf> sta: ==================
[00:00:03.303,894] <inf> sta: State: SCANNING
[00:00:03.604,003] <inf> sta: ==================
[00:00:03.604,034] <inf> sta: State: SCANNING
[00:00:03.904,144] <inf> sta: ==================
[00:00:03.904,174] <inf> sta: State: SCANNING
[00:00:04.204,284] <inf> sta: ==================
[00:00:04.204,315] <inf> sta: State: SCANNING
[00:00:04.504,425] <inf> sta: ==================
[00:00:04.504,455] <inf> sta: State: SCANNING
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