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?
There is a difference between password and passphrase in Ledger wallet.
Password or PIN is stored on device and it is used the moment you turn on your device and connect it to computer, and passphrase is used as 25th word for your seed words and it is connected with PIN.
They made it even more confusing then it should be but losing passphrase you are actually losing access to your coins.