This is spot on.
I like making leather goods for friends and family. As soon as I made my first few things, my parents and (now ex) wife starting making comments about making it my side hustle, selling at fairs/farmer markets, etc.
I took a few steps down that road, but the business side of figuring out costs, meeting deadlines, etc., absolutely killed my passion for my hobby and I basically quit doing it for almost two years.
I’ve only just gotten back into it over the past few months, making some things for my friends and “charging” them something like a homemade painting or a six-pack of good beer and letting them know their wallet/purse/whatever will be done when it’s done.
I’m happy, they’re happy, and my day job continues to be my source of income, while my hobby is my escape and still feels good.
I think the only time “doing what you love and you’ll never work” would actually work is if you ONLY do that task. If all you did was make leather items and have other people do the business side of things, then you might be able to focus on passion WHEN you want to focus on it.