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Can't you even see it even if you know the encryption password?

If you look at https://iancoleman.io/bip39/, this is what you can recover, everything above, not:

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So, if I get this right, you can't figure out the seed phrase from the BIP32 root key, but you can move funds from that wallet. Is that correct?

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Correct. BIP-39 is a convenience protocol. And it's been "discouraged for implementation" (because this) which is why it's not in Bitcoin Core.

However, one cannot get rid of BIP-39 even if it's as horrible as cryptographers think it is because after the PBKDF2_SHA512(mnemonic_seed) you cannot reverse it... so it's here to stay no matter what, in lieu of a better standard.

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You can extract the root key, not the seed phrase. See BIP-39 though it's extremely sparse [😭]

  1. oh and it's 2048 sha512 rounds using PBKDF2, so yeah, good luck with that quantum noob shit google ↩

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