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I understand "works" to be outward expressions of belief, such as Communion, baptism, service to others, etc, and does not include inward changes like faith, repentance, etc. My understanding is that Protestants believe some form of internal change needs to happen before one attains salvation.

None of what follows is particularly relevant to the original discussion, it's just a follow-up to something you said.

One had faith in Jesus and was told he would be with him in paradise.

It is highly likely that Jesus was referring to Jewish "sheol" or something like Catholic purgatory, not Christian heaven. Here's a Catholic perspective that cites Lutheran scholars, but basically here are the arguments:

• the thief was likely a Jew, so Jesus would've used Jewish terminology
• the Jewish afterlife had multiple levels, the top of which had saints waiting to enter heaven once the Messiah came
• Jesus didn't ascend to heaven until after the resurrection, and before doing so went to spirit prison (Catholic purgatory; see 1 Peter 3:19-20)
• heaven wasn't "open" until his ascension, so the thief couldn't have gone there

I think Luke 23:43 is reassurance to the thief that he'll have a chance to be taught, believe in Christ, and repent. The Catholics call this state purgatory, but many Christian denominations don't believe in that (me included, at least not the Catholic description). My point, however, is that Jesus does seem to be referring to some temporary place for people waiting for Christ to teach them and allow them into heaven. In Lutheran terminology, this would be hell, but perhaps a part of hell where redeemable people are (e.g. not the devil, but people who didn't have the chance to accept Christ). I don't know a ton about Lutheran theology, but it seems from 1 Peter 3:19-20 that some still have a chance after death to accept Christ.