Wikipedia has lost its legal challenge against the Online Safety Act. That means that if Ofcom, the UK’s telecommunications regulatory agency, labels Wikipedia as a “Category 1” service, it can force Wikipedia to verify the identities of individual contributors and editors, potentially risking their safety.
It is not a total defeat though. Wikipedia can still sue Ofcom if it does decide to label them as a Category 1 platform; the lawsuit simply was about whether it is legally permissible to do so. The court has also emphasized that Ofcom has the responsibility to protect Wikipedia and its mission, however vague that statement may be.
TLDR; Wikipedia is allowed to be labelled a category 1 website by Ofcom. They can still appeal for an exemption from the Online Safety Act’s stricter rules if this does actually happen.