The deprecation warning is non-blocking warning message and this has been happening from time to time since a few months. If you receiving it once, it will appear for almost all sf commands.
It is linked to an open issue on GitHub The Salesforce CLI outputs "DeprecationWarning: The punycode module is deprecated." after every sf command
If you are using Windows and installed SF CLI using windows installer, uninstall it, then reinstall it again with NPM via command npm install @salesforce/cli -g
Reinstalling via npm worked for me.
Check the other recommendations on the issue for more details and comment on the issue directly if needed