> A pass/fail dynamic would likely maintain student anxiety, if not increase it.

it will increase it because in pass/fail classes i have had you do not know if you're passing or failing until the final grade/result. With a grade average you know how far you are from failing but without it you have no idea. Maybe they keep the grading the same but whatever you end up with doesn't affect your GPA (good or bad), I can see that reducing anxiety. However, the students are going to be in for a shock the next semester when it's assumed they learned everything they should have first semester and class takes off from there.