WSO2 API Manager does not have this feature, as user management-related tasks are not part of the APIM scope. APIM only has basic user-related features. The password history feature is available in WSO2 Identity Server, as outlined in [1]. You will need to configure WSO2 IS with APIM to use these features. You can configure WSO2 IS as an external IDP by following this document [2].
[1] https://is.docs.wso2.com/en/6.0.0/guides/password-mgt/password-policies/#validate-password-history [2] https://apim.docs.wso2.com/en/latest/install-and-setup/setup/sso/configuring-identity-server-as-external-idp-using-oidc/