In a semi-safe situation (e.g. on busy public transit or in a crowded place with people behind me), I do sometimes unlock my password manager using Face ID to access a website, but I'd never enter my passphrase if the biometric unlock fails.
If somebody watches me enter my passcode and then rips the device out of my hands and runs off with it (assuming the password manager is not open), they now have access to most of the content on my phone, but importantly not the parts protected by Face ID, which includes the password manager.
If I had used Apple's password manager instead, they'd be able to recover all passwords (using the tactics described above or simply enrolling their own face in Face ID, which is possible using only the passcode).