What it means
The encryption key Home Assistant uses for this device does not match the one in the device’s firmware.
Why it happens
- The key in the YAML was changed (or regenerated) and the device was reflashed.
- Two configs with the same device name: Home Assistant connected to the other one.
How to fix it
- Copy the api: encryption: key from the current YAML.
- In Home Assistant: Settings → Devices → ESPHome → the device → Reconfigure, and paste the key.
- Keep device names unique on the network.