Stolen Device Protection protects you from loosing your account, not stolen device. You can't turn off SDP without working FaceID/TouchID, but you can erase it remotely (not factory reset), providing you remember Apple Account credentials. Broken FaceID doesn't brick your phone.Keep in mind that if FaceID breaks (eg you drop your phone or the hardware just fails), and iOS fails to recognize your significant locations (a completely opaque setting that cannot be explicitly configured by the user), then your phone is completely bricked, because there is no passcode/password override.
Stolen Device Protection is quite literally the worst possible way Apple could have solved the issue - the issue being that the device passcode can be used to reset the associated Apple ID password.
EDIT: It's not the first time I see such strange claims concerning SDP, so I verified the procedure in reality, using my iPhone with SDP turned on. So:
- I checked whether I can change my Apple Account password without FaceID (no I can't)
- I checked whether I can factory reset iPhone without FaceID (no I can't)
- I erased device remotely (EDIT2: eSIM is erased as well)
- I set up device using my Apple Account credentials
- FaceID is not set, you have to configure it from scratch (if you need it and it's not broken)
- SDP is turned off initially
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