I have a similar issue. On my first PC, I have enabled syncing my data including passwords. I created my Opera account by signing in with Google. Therefore, I don't have a password for my Opera account. But on the second PC, Opera wants me to provide such a password on https://auth.opera.com/account/v3/desktop/login/confirm-password in order to confirm my identity for password syncing. The "Sign in with Google" option is missing on this page (I was able to sign in with Google on the page before)... What should I do?
The encryption option is set to "Encrypt only synced passwords with your Opera account credentials".