The official Blake3 site / repo actually covers this itself:
> NOTE: BLAKE3 is not a password hashing algorithm, because it's designed to be fast, whereas password hashing should not be fast. If you hash passwords to store the hashes or if you derive keys from passwords, we recommend Argon2.
> NOTE: BLAKE3 is not a password hashing algorithm, because it's designed to be fast, whereas password hashing should not be fast. If you hash passwords to store the hashes or if you derive keys from passwords, we recommend Argon2.