OAuth 2.0 specification's introduction section gives one key information on the problem it tries to solve. I have highlighted a section below,
In the traditional client-server authentication model, the client
requests an access-restricted resource (protected resource) on the
server by authenticating with the server using the resource owner's
credentials. In order to provide third-party applications access to
restricted resources, the resource owner shares its credentials with
the third party
As a summary what OAuth wants to provide is an authorization layer which removes the requirement of exposing end user credentials to a third party. To achieve this it presents several flows (ex:- Authorization code flow, Implicit flow etc.) to obtain tokens which are good enough to access protected resources.
But not all clients may able to adopt those flows. And this is the reason OAuth spec introduce ROPF. This is highlighted from following extraction,
The resource owner password credentials grant type is suitable in
cases where the resource owner has a trust relationship with the
client, such as the device operating system or a highly privileged
application.The authorization server should take special care when
enabling this grant type and only allow it when other flows are not
viable.
According to your explanation, you have a trust relationship with client. And your flow seems to be work fine. But from my end I see following issues.
Trust
The trust is between end user and the client application. When you release and use this as a product, will your end users trust your client and share their credentials.? For example, if your identity server is Azure AD, will end users share Azure credentials with your client.?
Trust may be not an issue if you are using a single identity server and it will be the only one you will ever use. Which brings us the next problem,
Support for multiple identity servers
One advantage you get with OAuth 2 and OpenID Connect is the ability to use multiple identity servers. For example, you may move between Azure AD, Identityserver or other identity servers which of customer's choice (ex:- they already use on internally and they want your app to use it). Now if your application wants to consume such identity servers, end users will have to share credentials with your client. Sometimes, these identity servers may not even support ROPF flow. And yet again TRUST become an issue.!
A solution ?
Well I see one good flow you can use. You have one front end server and a back-end server. I believe your client is the combination of both. If that's the case you could try to adopt authorization code flow. It's true your front end is a SPA. But you have a backend you can utilise to obtain tokens. Only challenge is to connect front end SPA with back end for token response (pass access token to SPA and store other tokens in back-end). With that approach, you avoid above mentioned issues.
