As is discussed in T109909: Anon-only range block doesn't allow password resets, T240203 and other issues, Wikipedia and other projects currently prevent users from resetting passwords or even seeing the "Forget password" button when they access via a blocked IP address. It troubles and/or confuses innocent users, especially in zhwiki where many users living in mainland China rely on open proxies or VPNs to circumvent Internet censorship every day.
I propose to allow resetting passwords via emails as fallbacks. We just need a separate service processing incoming emails and triggering the reset "button". If an email is received by the service, the service could check if its sender address matches a registered account on any projects under Wikimedia. If it does, the service then manages to get a password reset link sent to that address. This way bears no security compromise at all and takes few efforts to maintain.