In general, yes. Big sites get hacked all the time. Passwords from those sites get cracked all the time. Anyone who uses the same password on multiple sites is almost guaranteed to have that password stolen and associated with a username/email at some point, which goes on a list to try on banks, paypal, etc.
Conversely, to my knowledge, there has been one major security breach at a password manager, LastPass, and the thieves got more-or-less useless encrypted passwords. The only casualty, at least known so far, is people who used Lastpass to store crypto wallet seed phrases in plaintext, who signed up before 2018 when the more secure master password requirements were put in effect, chose an insecure master password, and never changed it once in the four years prior to the breach.
It's not perfect, but the record is lightyears better.
Put it this way: Without a password manager, you're gambling that zero sites, out of every single site you sign on to, ever gets hacked. From facebook, google, netflix, paypal, your bank, your lemmy or mastodon instances, all the way down to the funny little mom-n-pop hobby fansite you signed up for 20 years ago that hasn't updated their password hashing functions since they opened it. With a password manager, you're gambling that that one site doesn't get hacked, a site whose sole job is not to get hacked and to stay on the forefront of security.
(Also, you don't even have to use their central servers; services like BitWarden let you keep your password record locally if you prefer, so with a bit of setup, the gamble becomes zero sites)