If it happened more than once, person 2 is a very slow learner.

YOUR water heater shouldn't be set for more than 140F, which is scalding, but 120 is plenty for most applications like hand washing and showering (no, you don't shower in 120F water, you mix with the cool anyways so 140 is crazy excessive to maintain money wise).

Some dishwashers have their own heating element, clothes don't need scalding, they can get high heat in the dryer anyway.

[link to www.waterheaterhub.com (secure)]