You are not on your own
On the one hand:
In a frontend context [...] there is no specific API to create a File Reference. You are on your own.
On the other hand:
use TYPO3\CMS\Core\Resource\FileReference as FileReferenceCore;
use TYPO3\CMS\Core\Resource\ResourceFactory;
use TYPO3\CMS\Core\Utility\GeneralUtility;
use TYPO3\CMS\Extbase\Domain\Model\FileReference as FileReferenceExtbase;
use TYPO3\CMS\Extbase\Persistence\ObjectStorage;
/** @var ResourceFactory */
$resourceFactory = GeneralUtility::makeInstance(ResourceFactory::class);
$file = $resourceFactory->getFileObjectFromCombinedIdentifier(
$myCombinedIdentifier
);
/** @var FileReferenceCore */
$fileReferenceCore = GeneralUtility::makeInstance(
FileReferenceCore::class,
['uid_local' => $file->getUid()]
);
/** @var FileReferenceExtbase */
$fileReferenceExtbase = GeneralUtility::makeInstance(FileReferenceExtbase::class);
$fileReferenceExtbase->setOriginalResource($fileReferenceCore);
/** @var ObjectStorage */
$objectStorage = GeneralUtility::makeInstance(ObjectStorage::class);
$objectStorage->attach($fileReferenceExtbase);
$frontendUser->setImage($objectStorage);