So what will be required after january 5th to set up new password

You can keep using your physical authenticator until it no longer works…

I have a physical Authenticator keychain. Do I need to take any action?

No. The physical authenticator is not affected by this change. However, the physical authenticator is no longer available and when the battery dies you will need to use the Battle.net Mobile App to continue using the Authenticator feature.

cf : Authenticator Mobile App Migration Deadline Approaching

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