Mac OS update password for "Local Item" Keychain

Solution 1:

I just followed this guide: https://techraptor.net/content/iron-mac-how-to-get-rid-of-annoying-local-items-keychain-box

TL;DR

  1. Delete the folder you find inside ~/Library/Keychains/
  2. Restart your mac
  3. Enjoy

Worked for me!