>then I don’t need to type the target user’s password; instead I enter the key’s passphrase, a hopefully much more complicated combination of words, to unlock the private key.

This sentence is a bit of a red flag, it looks like the author is making a (subtle) mistake in the category of too much security, or at least misjudging the amount of security (objectively measurable entropy) needed. This is of course a less consequential error than too little entropy/security measures, but still if one wants to be a cybersecurity professional, especially one with influence, they must know exactly the right amount needed, because our resources are limited, and each additional bit of entropy and security step not only costs time of the admin that implements it, but of the users that have to follow it, and this can even impact security itself by fatiguing the user and causing them to circumvent measures or ignore alerts.

On to specifically what's wrong:

Either a key file or a password can be used to log in to a server or authenticate to any service in general. Besides the technical implementation, the main difference is whether the secret is stored on the device, or in the user's brain. One is not more correct than the other, there's a lot of tradeoffs, one can ensure more bits and is more ergonomic, the other is not stored on device so it cannot be compromised that way.

That said a 2FA approach, in whatever format, is (generally speaking) safer than any individual method, in that the two secrets are necessary to be granted access. In this scenario one needs both the file and the password to authenticate, even if the password is 4 digits long, that increases the security of the system when compared to no password. An attacker would have to setup a brute force attempt along with a way to verify the decryption was successful. If local decryption confirmation is not possible, then such a brute force attack would require to submit erroneous logins to the server potentially activating tripwires or alerting a monitoring admin.

There's nothing special about the second factor authorization being equal or equivalent in entropy to the first, and there's especially no requirement that a password have more entropy when it's a second authorization, in fact it's the other way around.

tl;dr You can consider each security mechanism in the wider context rather than in isolation and you will see security fatigue go down without compromising security.