Before going into explaining my viewpoint, could someone, please, clarify
which LAN78xx USB-to-Ethernet bridge does this apply to? I already had
a look at a few LAN78xx datasheets, and I'm not sure how the external PHY
becomes exposed over the USB interface, so it needs a driver.
https://elixir.bootlin.com/linux/v6.10/source/drivers/net/usb/lan78xx.c#L2049
This is creating an MDIO bus device. The MDIO bus will be scanned and
PHYs on the bus found. There are then a few calls to phy_find_first()
which will get the PHY.
The code itself looks pretty broken, it is directly accessing PHY
registers, which a MAC driver should not do. That is a layering
violation.