Refuse Compromised Passwords Setting Missing

In the Grade Report Issues, It says I need to “Refuse Compromised Passwords”. I’ve looked up how to do that, but that setting is missing. When I try to auto-resolve the issue, I get the error below. Help?

Grade Report Issues
Refuse Compromised Passwords
Fix to enable Refusing Compromised Passwords. This is critically important as it ensures that users on your site are not compromising site security by choosing passwords that appear in data breaches.

An “invalid format” error prevented the request from completing as expected. The format of data returned could not be recognized. This could be due to a plugin/theme conflict or a server configuration issue.