How to enable both passwords at registration AND email confirmation together?
All you need to use is the user registration password module

Let users register with a password on the registration form when
verification mail is required.
By default, users can create accounts directly on the registration
form, set their password and be immediately logged in, or they can
create their account, wait for a verification e-mail, and then create
their password. With this module, users are able to create their
account along with their password and simply activate their account
when receiving the verification email.