I've created an account in Firebase using phone authentication. However, from the documentation, it mention that:
If you use phone number based sign-in in your app, you should offer it alongside more secure sign-in methods, and inform users of the security tradeoffs of using phone number sign-in
I couldn't find a field to inject the password into the users database.

Should I enable the password/email sign in method? Is there any documentation to refer to?

I added email and password using:
createUserWithEmail:email:password:completion:
2 accounts are created:

I should rephrase my question to:
If the user logout, when they sign in again should they use the phone number, or email and password?

updateEmail(primaryEmail)and also verify it by sending an email verification. If the user ever loses access to their phone number, they can trigger the password reset flow to recover their account (this would add a password in the process). If they changed their phone number, they can update it to the new one in the process etc. You can even remove the password, afterwards, if you don't want it by unlinking it. - bojeil