As the error suggests, make sure that you are using the correct signer when sending the tx.
By default, the .rpc method uses the local Solana ~/.config/solana/id.json wallet to sign for transaction.
Check that it is similar to the wallet signer you are using.
If different, you can first convert the method call into a transaction and sign it
await program.methods
.increaseCounter(new BN(1))
.accounts({
counter: counterPda,
authority: wallet.publicKey,
system_program: SystemProgram.programId,
})
.transaction();
await signTransaction(tx);