It doesn't look like sudo is the problem - it looks like pacman -Syyu wants an initful container (one with systemd), which you can create using distrobox create:
--init/-I: use init system (like systemd) inside the container.
the su command doesn't take your password, it takes the password of the superuser. if you want that to work in future, you could use sudo passwd root to reset it, or sudo su to avoid a password entirely