In general, there are pros and cons to both using dynamic (generated) passwords and using a static password for your test users.
Using dynamic passwords has the advantage of increased security, as it makes it much more difficult for unauthorized parties to access the test data. Additionally, dynamic passwords can reduce the risk of accidentally reusing passwords in the test environment that are also used in the production environment.
However, using dynamic passwords can also lead to complications in the testing process. For example, if you need to debug a test, you will need to store the password somewhere to be able to log in as the test user. This could potentially create a security risk, especially if the password is stored in a publicly accessible place such as a code repository. Additionally, if you generate the password with a library such as Faker, you run the risk of generating a password that is not compliant with your password policy (e.g. too short, not complex enough).
On the other hand, using a static password has the advantage of simplifying the testing process. You don't need to worry about generating the password, and there's no risk of it being too complex or not meeting the password policy. Additionally, if you use the same password for all test users, you only need to store it in one place, reducing the risk of it being lost or forgotten.
However, using a static password does have its own security risks. If the password becomes known, an unauthorized party could access the test environment and potentially cause harm. Additionally, if the password is reused in the production environment, this could lead to a security breach.
Ultimately, the decision of whether to use dynamic or static passwords will depend on your specific testing needs and the security requirements of your organization. It may be necessary to weigh the benefits and risks of each approach and make a decision based on your specific testing requirements and organizational security policies.