This interpretation is very unlikely, given that it would be redundant with the first bullet point: "If you haven’t used Face ID in 48 hours [...] it will ask for a passcode".
Assuming that Apple engineers aren't stupid, the correct interpretation is "we want people to enter their passwords at least once a week so they don't forget them, but we also don't want to bother them if they're in the middle of something". So yes, once a week, you will be forced to type your password upon waking up.
I read it as "you need to enter your password if you haven't used your phone in a week, but if you use your phone every day, you only have to enter your password after each reboot"
Assuming that Apple engineers aren't stupid, the correct interpretation is "we want people to enter their passwords at least once a week so they don't forget them, but we also don't want to bother them if they're in the middle of something". So yes, once a week, you will be forced to type your password upon waking up.