Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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Matrix and its implementations like Synapse have a very intimidating architecture (I'd go as far as to call most of the implementations somewhat overengineered) and the documentation ranges from inconsistent to horrific. I ran into this particular situation myself, Fortunately this particular step you're overthinking it. You can use any random string you want. It doesn't even have to be random, just as long as what you put in the config file matches. It's basically just a temporary admin password.
Matrix was by far the worst thing I've ever tried to self-host. It's a hot mess. Good luck, I think you're close to the finish line.
Matrix seemed interesting right until I got to self hosting it. Then, getting to know it from up close, and the absolute trainwreck that the protocol is, made me love XMPP. Matrix has no excuse for being so messy and fragile at this point. You do you, but I decided that it isn't worth my sysadmin time (especially when something like ejabberd is practically fire and forget).