.. can you reset that password? Using a text message?

You actually can't, if you forget the password, the account will remain indefinitely locked (and deleted after 6 months of inactivity if you haven't changed the default time).

Technically yes but it takes 1 more step.

afaik (maybe I'm wrong) you can only reset a Telegram cloud password with a recovery email address. And you can maybe access that email address through a SMS based recovery.

Having your Telegram account with a cloud password and the recovery email locked with a safe 2FA method "should be safe".

The other answer to your comment says that you can't, so it's possible the the feature is broken or something? But you can configure a recovery email, which is supposed to be used, if you forget your password. But I have not used it yet.

You can but it takes 7 days and it's really noisy

Steps to pwn assuming you don't have access to their email:

1) insert phone number (victim receives code via telegram)

2) ask code via sms

3) intercept sms and login

4) click "reset password" on the 2fa prompt (victim receives message stating that they requested a password reset and they have 7 days to confirm their phone number (via sms) or their account will be reset)

5) wait 7 days

6) repeat steps 1-3

7) click "reset password"

8) confirm reset

9) yey you logged in as the victim, all the chat history is permanently deleted and the old sessions are invalidated kicking out the victim

No, you can only reset it with an email (that you add when setting up the password) or using an already-active device.