Is HWINFO lying about the temps?
The Thermalright Peerless Assassin can cool >200W TDP CPUs. 7600X has, like, 105W TDP.
No, it's not.
You have to understand that cpus are complex - there's more to it than that. There's factors such as thermal density, how the IHS will flex under thermal cycles, how many 'layers' are involved in heat transfer...
Is it even possible (and safe) for a CPU to reach 95°C so quick before the cooler can dissipate the heat?
Yes. The adages about older Intel chips that most are used to don't apply to these. You also applied an all core load, of which they are specifically designed to act that way.
Look at it another way: the actual dangerous thermal territory for Ryzen 7000 would require you to raise thermal limit up from 95C.
These companies already know that if they give users too much freedom, there will be extra cases of folks breaking stuff. The 95C starting line wouldn't be a thing if AMD's own engineers didn't believe it was safe.
Will the temps go down if I just wait for the heat to dissipate for, like, 3 minutes?
If you stop the all core load, of course the temperature will decrease.
Will the temps not reach 95°C if I set a manual voltage and clock speed?
This comes up so much, that I think AMD should've included a disclaimer with these cpus. Most PC customers are not tech savvy or look at few, if any reviews, and will get caught off guard(overreact) by these cpus.
Thus, they go and take a chance on reducing/increasing cpu performance because they let their personal feelings get in the way.
Some folks also panicked with Ryzen 3000 and 5000, since they did something different from the 'norm': they had higher low load thermals...
Let the cpu do its thing, and maybe get more fans in there; the cpu will push higher clocks on its own the better cooling you have. Ryzen 3000 and 5000 did it too, minus the 95C thing.