If they’re able to determine that you’re using a similar password, it’s because they’re not hashing your passwords and are storing them as plaintext. You should run far far away from any site or service that is able to enforce similarity rules. Because when you properly hash a password, even a minor difference such as upper/lowercase will produce a wildly different result.

it’s better to use poems. I’ve done Hamlets 2b monologue, View From Westminster Bridge, Tell the Truth but Tell it Slanted, The Raven, Iago’s Many a duteous knave, Louis the Dauphin’s I am too high born to be propertied.

Or really any poem you happen to have memorized.

I can kind of see the advantage to disabling it, we started using Windows Hello recently and while it’s mostly been good we have seen an increase in the amount of people forgetting their Microsoft password since they no longer need to use it to sign in every day.