The relevant portion is {'result': 'Failed', 'reason': 'Incorrect username or password entered. Please try again.'}.
You should not be using the same password that is used to log in to the web UI. For a BotPassword, see the configuration steps at https://www.mediawiki.org/wiki/Manual:Pywikibot/BotPasswords.
Thanks JJ for the immediate reply.
Created a new bot password and it works well.