Meanwhile I have heard back from the frame work support team and finally managed to re-set (remove) the bios password successfully.
The main problem in my situation was, as far as I understand in the mean time, that the AC external power was not actually charging and feeding power to the AMD laptop, this caused the faulty initial situation where I could not apply the steps needed to remove the password from the hardware.
Just today (even after I wrote my lengthy reply and thanks to the support team via email) I found in the AMD bios procedure knowledge base entry (3.03 bios update from inside linux via lvfs etc…) at:
https://knowledgebase.frame.work/framework-laptop-bios-and-driver-releases-amd-ryzen-7040-series-r1rXGVL16
and I quote here:
LVFS may not update if the battery is 100% charged. LVFS uses the battery status to determine if it is safe to apply updates. However if our battery is at 100% and the charger is off, we set the battery charging status to false. In this case you can discharge your battery a few percent, then plug in AC again and run fwupdmgr update.
my emphasis here. So I even had set the battery limit of charging to 80% in my situation and I was not managing and succeeding to bring this laptop into actual and factual charging state, thus the steps needed to re-set (remove) the battery password would not initiate and take place to begin with.
Additionally I found out today, that I actually have left the original frame work AC charger (european model) connected all the time to my AC socket/power grid. And this would somehow when the laptop not being connected to the USB-C side of this frame work AC power supply, would somehow put the AC power supply into sleep mode, that even when my laptop was way below the 80% of battery charge, it would still not light up the charging LED on the laptop side. Only when I fully unplugged the AC power supply (charger) from the AC power outlet / socket, and then re-plug it into AC socket power grid, and if then being attached to the USB-C extension module on the frame work laptop, the LED light would light up and it would charge to the percentage or max that one would set in the bios.
And this charging state IS necessary to take certain steps with this frame work laptop, such as that bios upgrading procedure up in the frame work knowledge base documentation above or the bios password removal procedure that was given to my by the frame work support folks.
Frame work support: please document these bios password removal steps publicly and openly on the website knowledge base articles etc
Thanks again for all the help with this situation.