Well I completely missed bcrypt requirements(skim reading got me again, after actually looking it's obvious the author of the documentation is really beating you over the head that you need to use bcrypt 
). After that everything seems to work as expected.
Don't worry that $uperSecure4sure password is my defecto who cares who sees it password by the way.
Node-Red is installed on the IoT Edge Computer as a service but it is not in the environment path so it's not possible to trigger it from the terminal in the conventional sense. That is more than likely why the node-red admin hash-pw command is not working. You'll just get -ash: node-red: not found. This is the first time this has been any issue so we may reconsider this. I didn't do the image setup so I'm not sure where exactly node-red is installed on the device, if I knew we could just export it to the PATH(NVM found it. Working on this now)
