WalletConnect v1.0 protocol shut down on June 28, 2023, so you need to upgrade your DApps to keep supporting Wallet Connect (v2)
Their official migration guide
If you are using Scaffold-ETH 1, you are probably using Web3Modal v1.0. They recommend updating to Web3Modal v2.0, which might not be trivial for your App, and also requires adding extra deps (wagmi / viem). You could also use WalletConnectModal, but it won't include browser wallets (like Metamask) out of the box. RainbowKit will be another option.
In this guide we are going to update to WalletConnect v2 keeping Web3Modal v1 (using custom providers), which might be a quick & easy solution until you decide to upgrade to a more recent version.