It depends. I used magic links for a system where the user would log in every 6-12 months. It didn't make sense to force them to make a password.
Why not? Most browsers are slowing pushing password managers on users and the experience is lovely. Register: 1. I click the password field. 2. I click "use autogenerated password" 3. Sign up. For login: 1. Click "login". The magic link experience is comparatively awful: 1. My email address never auto-fills so I need to click the field and select the completion suggestion. This is even worse if I am using a per-site…
There are legitimate downsides to magic links but this isn't realistic. Do you not have to enter email on register? Where is the email confirm step for password signup? Finding the tab you just opened and dragging it... really? All of that happens on first signup as well. And the comment you are replying to is talking about a 1-2 times a year process, is a magic link really so difficult to use twice a year?