Do I need OAuth for personal scripts/python script instances for a reddit mod bot?

Ever since the API changes, I've been running into 429 errors and reached out to Reddit Support with them replying that they can submit a exemption request as long as it uses OAuth. I've never used OAuth before. I've read https://praw.readthedocs.io/en/stable/getting_started/authentication.html and it seems that I'm already using the password flow as a method of OAuth supposedly:

reddit = praw.Reddit(client_id="SI8pN3DSbt0zor",client_secret="xaxkj7HNh8kwg8e5t4m6KvSrbTI",password="1guiwevlfo00esyy",user_agent="testscript by u/fakebot3",username="fakebot3",)

(*The credentials are not real*) and

print(reddit.user.me()) which does show my bot username but I am confused as I thought this was the normal or regular form of accessing the API or PRAW and not OAuth.

These are personal scripts running under one bot and it's only me using the bot. I'm not running a website and feel that the redirect_uri isn't needed.

Any help or advice would be appreciated.

Thank