gengar, as to your question I was at a station in the Kansai area (which I will not name for reasons that will become obvious) the other day to pick up the Kansai WIDE Area Pass. (I used JR-WEST ONLINE TRAIN RESERVATION because I felt that buying it from JR West was probably more reliable than using a travel agent outside of Japan.) I actually went to the ticket office because when you pick up the pass from the vending machine, you have to tap “agree” to indicate that you’re a temporary visitor. It’s a self-declaration 自己申告 but I thought it would be good to do it at a ticket office if possible, so I don’t have to state I’m a temporary visitor.
When I went to the ticket office, I told the staff member that I wanted to pick up my Kansai WIDE Area Pass. She checked my passport, and noticing that there was no temporary visitor stamp, she asked me if I’m a resident, to which I replied ‘yes’. She told me she’s not supposed to authorize it, but she told me she’d do it, just keep it on the down-low lol

Also, she told me if the staff ever ask to check my passport, to tell the staff that I’m using the Trusted Traveler Program and so I don’t have a stamp in my passport.
So I was able to pick up the pass. I don’t know if the vending machine would have worked, because I didn’t try it, but there are definitely cases where the railway staff let the residents use the temporary-visitor passes. This isn’t the first time I’ve been able to get passes that are only meant for temporary visitors, so I’m sure my experience is not unique. I’m willing to bet there have been thousands of cases like mine where staff have granted exceptions to people who would not have been otherwise able to use the pass.
I believe that this also addresses potential ethical concerns regarding whether it is morally correct to use a pass that one isn’t eligible for. If the staff issue the pass without the customer attempting to deceive them, then isn’t it the case that it’s totally fine for the customer to use it? Of course, it’s unethical to lie if the staff (like at the gate) ask if I’m a temporary visitor, but this is very unlikely considering you can use the automatic gates and make reservations using the “green” machine.