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Diode mode to ground doesn't give a reliable information. Resistance to ground on CPU VCore would be 15-25 ohms for this board, but that just tells you the CPU isn't fully shorted. (can still be dead)
2018 doesn't have True Tone, 2019 and 2020 have True Tone. It seems they are not interchangeable. Extremely hard to buy good LCD assemblies for these machines. Mostly garbage on the market. Get it replaced at Apple.
The NAND chips are most likely dead. Happens very often when something goes wrong with the SSD power rails.
Thermal camera could still help see something warming up slightly.
Yes the user password will still be needed to be able to read FileVault2 encrypted volumes. Maybe he gave EFI password or something else that's different.
CPU replacement could work, but of course requires BGA rework station, experience with it and a good CPU.
Apparently Apple has a way to recovery data from T2, without needing CPU. This requires access to Apple diagnostic servers, so third-party repair shops cannot do it.
T2 stores part of its firmare on the NAND chips so they need to be working properly for T2 to boot.
It should be possible to swap the NAND chip and then perform a T2 DFU recovery, but I haven't seen anyone confirm it yet. (no donor boards available for these)