Investigating Privilege Escalation Methods in AWS
know.bishopfox.com
know.bishopfox.com
In short: don't give passrole permission, or any IAM policy modification policy to people. If you do, yes, privilege escalation is possible
As noted by other comments the parent article focuses on capabilities that grant definition of capabilities. It shouldn't be surprising that principals can use that to establish further capabilities in the absence of other restrictions.