Why does it not get set until I push the second string on to the array?
In short; because you don't set anything in the hash until the point, where you also add the second string to the array.
What is happening in the background?
To see what's happening in the background, let's take this one line at a time:
lph = Hash.new([]) #=> {}
This creates an empty hash, configured to return the [] object whenever a non-existing key is accessed.
lph["passed"] << "LCEOT" #=> ["LCEOT"]
This can be written as
value = lph["passed"] #=> []
value << "LCEOT" #=> ["LCEOT"]
We see that lph["passed"] returns [] as expected, and we then proceed to append "LCEOT" to [].
lph #=> {}
lph is still an empty Hash. At no point have we added anything to the Hash. We have added something to its default value, but that doesn't change lph itself.
lph["passed"] #=> ["LCEOT"]
This is where it gets interesting. Remember above when we did value << ["LCEOT"]. That actually changed the default value that lph returns when a key isn't found. The default value is no longer [], but has become ["LCEOT"]. That new default value is returned here.
lph["passed"] = lph["passed"] << "HJKL"
This is our first change to lph. And what we actually assign to lph["passed"] is the default value (because "passed" is still a non-existing key in lph) with "HJKL" appended. Before this, the default value was ["LCEOT"], after this it is ["LCEOT", "HJKL"].
In other words lph["passed"] << "HJKL" returns ["LCEOT", "HJKL"] which is then assigned to lph["passed"].
What is the more idiomatic Ruby way
Using <<=:
>> lph = Hash.new { [] }
=> {}
>> lph["passed"] <<= "LCEOT"
=> ["LCEOT"]
>> lph
=> {"passed"=>["LCEOT"]}
Also note the change in how the Hash is initialized, using a block instead of a verbatim array. This ensures a new, blank array is created and returned whenever a new key is accessed, as opposed to the same array being used every time.