This is bad:
microsoftwheresmyemail:~/domains/microsoftwheresmyemail.com/public_html$ wp user update 2 --user_pass=a
Warning: Invalid user ID, email or login: '2'
microsoftwheresmyemail:~/domains/microsoftwheresmyemail.com/public_html$ echo $?
0
This was reported in #1415. The discussion was then moved to #1430, and better behaviour was introduced in #3577 ... but not for wp user update.