What is the situation with APFS? Is it something that Apple has implemented on OS's newer than HighSierra?
Apple devices running iOS 10.3 (or newer), watchOS 3.2 (or newer), tvOS 10.2 (or newer) all run APFS as the file system. Macs that have internal SSDs that are not in a Fusion Drive configuration have their OS volume converted to APFS upon installing macOS High Sierra (any version) or newer. Macs that have either internal hard drives or a pairing of an internal hard drive and an SSD in the form of a Fusion Drive have their OS volume converted to APFS upon installing macOS Mojave (any version) or newer. I believe there are roundabout ways to opt out of it in High Sierra, but I believe this goes away with Mojave.
If you are installing High Sierra or newer on a Mac that has never installed High Sierra yet, you'll want to format your drive as HFS+ and let the installer convert the drive to APFS. Similarly if you are installing High Sierra, Mojave, Catalina, or Big Sur on a Mac that has yet to go past Sierra, you will want to format your drive as HFS+ and let the installer convert to APFS. Why? Because your Mac will need to install a firmware update that lets it recognize and boot from APFS formatted drives.
As for why it exists? Apple's stated reasoning is that it adapts better to SSDs and modern data management conventions specific to SSDs. Considering that all Apple products (save for older ones with hard drives and Fusion drives that will eventually cycle out of regular use) use some form of solid state drive, I think this is them building for the future. Plus, it's more space-efficient (copies of files are just pointers to the original, saving loads of space). Though, I'm not gonna lie, I find it far more confusing than HFS+. But, the average user isn't supposed to be bothered by it. APFS makes possible many features fundamental to both T2 based Intel Macs and Apple Silicon Macs.
Why did this change occur now?
It didn't occur now. It occurred in 2016 for iOS/iPadOS, watchOS, and tvOS, in 2017 for SSD-based Macs, and in 2018 for hard drive and fusion drive based Macs. As for the timing? I'd say that Apple built it in to optimize iOS/iPadOS, watchOS, and tvOS devices, also to build for T2 Intel Macs and Apple Silicon Macs, both of which are built around the Mac using APFS and not HFS+.
Does it have any issues when connecting an iPhone with iOS12 with an iMac using HSierra or any other backward compatibility issues?
It shouldn't. The version of iOS on an iPhone should have no bearing on the Mac that's running it, so long as said Mac is running a new enough version of iTunes to support connecting and syncing that iPhone. If you're stuck on High Sierra and you're trying to sync an iPhone 12, you might have issues. But I'd imagine that whatever the most recent version of iTunes that runs on High Sierra ought to have no issue syncing an iOS 12-based iPhone.
Similarly, there's nothing about your Mac having made the jump to APFS that would stop it from syncing with an iPhone still on iOS 12.