Apple T2 Security enclave concerns

Yes, but did you actually successfully change the password via this method ?

Re: “… Now, I CAN set up a firmware password to prevent something like this, but sometimes it may not be ideal for my environment, and/or I assume that it can be bypassed one way or another …”

Only by Apple with sufficient proof of ownership.

Ref:

Set a firmware password on your Mac - Apple Support

Have you turned on Filevault to see if that changes anything? Because without Filevault enabled, then your password is irrelevant anyway for accessing the data.

The only time a firmware password lock will get in the way is if you are trying to boot to something other than the internal SSD. And even with that all you need to do is Option Boot and enter the firmware password to get your other boot options.

Mu-iOS wrote:

I have tried the command, and it instantly opened a reset password window prompting me to type a new password for the user account, without asking me for the password.

Did you do this by going into recovery?

You can't reset the password without knowing the password.