The first iOS 17.3 beta rolling out to developers today includes a new “Stolen Device Protection” feature that is designed to add an additional layer of security in the event someone has stolen your iPhone and also obtained the device’s passcode.
When the feature is turned on, iPhone users are required to authenticate with Face ID or Touch ID for additional actions, including viewing passwords or passkeys stored in iCloud Keychain, applying for a new Apple Card, turning off Lost Mode, erasing all content and settings, using payment methods saved in Safari, and more.
I think the point is to secure your identity within the phone, not just brick the phone. (Unless a 5 dollar rom disables passcode locking or something.)