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My free Spotify on My Tesla 3 was working but not now

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Do I need to be a Spotify premium member to use Tesla App now? Why suddenly stop working?

Yes (in the US at least). No idea how you mention it was working previously because tesla specifically says you require a premium account to log into spotify (again, at least in the US)
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Information directly from tesla connectivity support page.

Connectivity Packages​

Connectivity PackagesStandardPremium
Navigation
Live Traffic Visualization-
Sentry Mode - View Live Camera-
Satellite-View Maps-
Video Streaming*⁺-
Caraoke*-
Music Streaming*⁺-
Internet Browser*-
Features subject to change and may vary based on hardware configuration
* Currently available over Wi-Fi for Standard Connectivity
*⁺ A paid subscription to streaming services is required to access music and media streaming
 
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