Key pairs created from a passphrase is part of BIP39 and BIP32, which is completely unrelated to BIP38.
The word "Passphrase" for bip38 encryption can be misleading terminology because most people think of the 12-word mnemonic when they hear "passphrase" which is associated with bip32 HD wallets.
The encryption password you enter into bitaddress simply encrypts your one single private key so that it can not be used unless you decrypt it by typing in the password.
Since it can make multiple paper wallets from one pass phrase
The passphrase is not used in that way. Bitaddress can/will generate multiple paper wallets for you but the keys are not derived from the passphrase. If you elect to encrypt your private keys with a bip38 encryption password each key will be encrypted with that password. It is not creating any keys from the passphrase.
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