This is clearly an incorrect interpretation on Philippians 2:12 because the “work out our salvation with fear in trembling” is in context to Philippians 2:13 that says that it is God who works in us to do of His good will and pleasure. So we are to work out our salvation in God working through us.
Philippians 2:12 (AMP) - So then, my dear ones, just as you have always obeyed [my instructions with enthusiasm], not only in my presence, but now much more in my absence, continue to work out your salvation
[that is, cultivate it, bring it to full effect, actively pursue spiritual maturity] with awe-inspired fear and trembling [using serious caution and critical self-evaluation to avoid anything that might offend God or discredit the name of Christ].
The 'fear and trembling' spoken of in this verse, is a reverential attitude towards God who works in us to will and to do of His good pleasure. In 1 John 4:18 we read that "perfect love casts out fear." The fear that perfect loves casts out is the fear of God’s judgment/condemnation.
Those who are in Christ know the love of God, which drives away fear of condemnation. Unhealthy fear, along with bondage to insecurity which pictures God as a tyrant who can't wait to punish us every time we mess up is no way to live the Christian life.
13 For it is [not your strength, but it is] God who is effectively at work in you, both to will and to work [that is, strengthening, energizing, and creating in you the longing and the ability to fulfill your purpose] for His good pleasure. *Nothing there about "type 2 works salvation."
(See also my
post #34 on how Sanctification of the Spirit is for salvation).
You turn sanctification of the Spirit into "type 2 works salvation."
Also why all the trembling if it is not talking about fear? Jesus says fear not the one who can destroy the body, but fear the One who can destroy both body and soul in Gehenna (i.e. the Lake of Fire) (See: Matthew 10:28).
Not unhealthy fear, but reverence and respect. We are to fear God, but not fear Him as though He is an unloving tyrant who can't wait to throw His saints into hell.
Why fear God if we there is no penalty from sin?
Romans 3:23 - All have sinned and come short of the glory of God. Romans 6:23 - For the wages of sin is death, but the gift of God is eternal life through Jesus Christ our Lord.
Jesus does not make it sound like we can sin and still be saved by His words in Matthew 5:28-30, Matthew 6:15, Matthew 12:37, Matthew 19:17-19, Matthew 25:31-46, Luke 9:62, Luke 10:25-28, etc; For even the apostle Paul said if any man does not agree with the words of Jesus and the doctrine according to godliness, he is proud and he knows nothing (1 Timothy 6:3-4). James 4:6 says God resists the proud and he gives grace to the humble.
So according to your interpretation of these passages of scripture, anything short of being sinless, without fault or defect, flawless, absolutely perfect 100% of the time (exactly like Jesus) means that believers will not remain saved? So how do you interpret Philippians 2:12? Work out your salvation by obtaining entire sanctification/sinless perfection in order to remain saved?
In the parable of the Pharisee and the Tax collector in Luke 18:9-14, which one was confident of their own righteousness and looked down on everyone else and which one would not so much as raise his eyes to heaven, but beat his breast, saying, "God, be merciful to me a sinner!" and went down to his house justified? Always remember this parable when discussing pride and humility.