Personally I'm no fan of magic links.
But the people who do like magic links would say the typical 'forgot password' flow is to send a password reset magic link by e-mail. That means you've got all the security weaknesses of a magic link, and the added weaknesses of password reuse and weak passwords.
Of course you can certainly design a system where this isn't the case. Banks that send your password reset code by physical mail. Shopping websites where resetting your password deletes your stored credit card details. Things like that.