Folks are missing the point.
To clarify:
1) No circumvention occurs with TFileStream, because running your app as sudo, you are the admin; so you can actually normally access files that have been created by root and are in the wheel group.
The bug is that FileExists breaks, because fpAccess somehow "impersonates" the signed on user (instead of the elevated user), so per this "feature" (no pun intended), it is actually true that the file does not exist for the ordinary user (although I suppose even that is a bug ultimately - as the file does exist, but cannot be accessed by the ordinary user).
2) TFileStream works because the file does exist and the invoker application is running elevated, so there's absolutely no reason why it cannot be read by the elevated app.
3) This issue reproduces steadily on the latest version of macOS, so all that stuff about root/wheel being obsolete doesn't apply. When you, for example, as in my test case, run 7z to extract files inside an elevated macOS app, all created files are indeed owned by root and a member of the wheel group as such.
To restate my requests:
a) Goes without saying the bug should be fixed at some point.
b) How do I use TFileStream with the "FollowLinks" option set to false? This "option" doesn't exist with TFileStream, but it does exist with FileExists.
Thanks again to all those who have kindly chimed in with their thoughts!
Any failure to clearly explain is mine and mine alone.