Will they still be able to use the seed words in another wallet with the same derivation path, even if they also used a password?
Or will they need to remember the password too?
I believe you can import it in other wallets like Electrum without any problem. What I know is that the Ledger password should be exclusive to that device only. It's not the same as creating a bitcointalk account and accessing it on different computers where you need a password.
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Resetting your Ledger Live passwordBy resetting Ledger Live, you will not lose your crypto assets since your private keys giving access to your funds remain secure on your Ledger device and are backed up by your recovery phrase.