@ale.spodin - Reg your question, yes a brand new user will be created under the passwordless email connection with the new email. Please note that the email address is unique within a connection & if you are calling the PATCH /api/v2/users/{id} with the user_id of the email/password user, then ideally you shouldn’t receive the “user already existing error”. One scenario I could think of where you might get this error is if you already have a user with the new email in the email/password connection.
Agreed, it would have been nice to have this feature supported out of the box. I checked internally & I do see feature requests on this but unfortunately, they did not make it to the roadmap compared to other requests.