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Roughly 5 million USD invested into stock market is enough to live a comfortable middle-class life off the interest.
Correct, passive income does exist, it's called owning and living off the work of others.
...and still have the entire principle upon death. But you you still need $5m to exist when you die?
This means that unless you really have a need to pass on $5 million to your heirs, the number is closer to $2.5M-$3m and live the exact same lifestyle (same income from interest only) by gradually drawing down the principal while also taking the interest. Its impossible to know the year of our actual death (by natural causes), but you can likely get close and reduce the draw down amount to extend the money you have left then.
Even then spending in retirement isn't usually linear anyway. Behaviorally spending will increase substantially when you initially retire for a time as you take your trips and indulge in your leisure activities in the first 5 or maybe 10 years, but your spending will gradually decline anyway as your health limits your activities for the next 10 to 20 years. Only really late in life as you get closer to death does your spending typically go back up (for medical expenses).
Because spending isn't linear and you can drawdown your principal, the number declines again to about $1.5m-$2m needed to live a comfortable middle class lifestyle until death.
And 5 million is more than most people will make in their entire lives. So for the average person who won't get a multi-million dollar loan/inheritance from mommy and daddy, passive income doesn't exist
..which is a completely different argument than what you started with. You're blatantly moving the goalposts.
You don't need a multi-million dollar loan/inheritance to retire with $5 million. You need substantially less and the time for it to compound. A person retiring today with nothing but boring a passive S&P500 investment of $50,000 and 40 years (average working years length) in 1985 would have $5,508,666 right now without ever making another contribution than the first $50k. That's even going through all the financial downturns during that span of 1987 Black Monday stock market crash, Dotcom bubble burst, 9/11, Great Recession, and COVID.
I'm not disagreeing that most people don't have $50k when they turn 18 to put into retirement, but I wanted to point out the power of the passive part of this that it only takes $50k with no other action but time to retire with over $5m.