Well, in this particular case passwords are always hashed. So the platform deals with that for you. Other changes to the data model need a migration, which is covered here: https://alan-platform.com/pages/tuts/migration.html
It looks like you're using SHA256(username||password) in this example. Even if it's only an example, why use a homebrew password hashing scheme based on an unsuitable hash function and bad ad-hoc salt handling, instead of a strong standard password hash with built in salt handling? And what code/specification is required to use a secure algorithm, like bcrypt with a random salt?
People often copy from such tutorials and will then end up with insecure password storage.
As someone who's not a developer but still occasionally looks through these "build an app" tutorials, password/authentication portions always worry me. I wish I could know that best-practices were shown as far as storing/encrypting user data/passwords.
Is this defined anywhere within the project or is this framework magic? (Or "glue" if you don't like the term magic). password is not mentioned again anywhere in the documentation, I'd like to understand how the framework knows to hash the input.
The line `password : . 'Password'` points at the password property, which tells the framework to hash it. What kind of hashing isn't something you should have to specify or worry about. It's a strong salted hash and we'd like to make it even better at some point, but that's firmly in the realm of the framework implementation.
I think you may have some issues persuading customers that's a wholly valid approach, especially when you're dealing with security and data integrity, GDPR, and so on.
People often copy from such tutorials and will then end up with insecure password storage.