The issue has to be a matter of belief in an after life. If you believe in one, then using ‘passed’ is fine because it’s really short for ‘passed on’ and that has to be …… to somewhere. If you don’t, then it’s meaningless. The word ‘died’ rarely appears in local newspaper death announcements now. We’ll be going back to avoiding the word ‘pregnant’ next (expecting the pitter patter of tiny footsteps etc).
As someone interested in language and how it evolves, I rather enjoy euphemisms. But not this one!
My late mother, an atheist, always (for a laugh) referred to when she was ‘gathered’!