I went some deep diving in terms of using the htpasswd CLI and one can leverage  a nice automated way of generating password for Node-RED admin authorization using bash and tools like envsubst.
Although node-RED backend uses brcypt for decryption, there were some things that I found out and hope to help the community in their node-RED journeys for security. I am very happy to discuss any suggestions, critiques or improvements. Just like everyone else I am happy to help and learn.