For the Lutheran view of sacramental grace and faith alone being complementary to each other to make any sense, start with our doctrine of the cross and law/gospel distinction.
We affirm that all are born into sin and thus by nature are opposed to the things of God. Under the law, all are guilty before God.
It is because all are bound to the sin under the law, the law can never save nor can it offer salvation to us.
Only the gospel can save us. What is the gospel? The gospel is God Incarnate, or God in the flesh, crucified for our sins. That is Christ took our place on the cross for our sins that kept us separate from God.
It is what Christ did that provided payment for our sins on our behalf. He provided the cure. Better yet, He IS the payment. He IS the cure.
Now objectively He provided salvation for on the cross. Folks will say if He did it for all, all must be saved. It does not follow. Payment made for us is not same as payment received. We still need to receive the payment which is in other words Him!
Suppose someone sent you a check to pay your fine for you. If you don't make use of it, it is of no benefit to you. Suppose there is a disease that affects everyone and is deadly to everyone. If a doctor discovers the cure objectively for all, it doesn't mean in subjective sense, all receives it. Some may not believe it is the cure.
Now, folks will say if Christ died for all, and not all are saved, it must mean His work on the cross doesn't save anyone. Again, that is incorrect. His work saves. In of itself, it saves. Independent of whether we believe it not, the work was finished in its saving value. It doesn't depend on us believing for it to be for us. It is objectively true for us even if we don't receive it, and in that case, it didn't get applied to us. But when receive in passive sense, it is applied to us. It is still on its own monergistic.
The gospel then is Christ crucified for our sins, and saves us by grace through faith in what He did for us. It is faith in that objective fact. Rejecting that makes God out to be a liar because it is true for those who don't believe also.
Folks will say if Christ died for them, then it is unjust for them to be in hell since their sins are paid for.
Again, that conflates what was done for at the cross with reception of that finished work.
As long as we are without Christ, we remain under law. The gospel is given for us objectively but unless it is possessed by grace through faith, it remains outside ourselves.
The gospel is offered to us and given to us objectively through outside means- word and sacrament. If it is faith alone that receives the cure or payment so to speak given for us and offered to us as gift wrapped to us in word and sacrament.
And what makes word and sacrament given to and for us? The work of God's grace to call us to receive what was done for us at the cross that is from outside ourselves and independent of anything we do.
Through such means we are called to receive Christ who comes to us via outward, objective and tangible means. In baptism through faith, we are clothed with Christ. We receive Him and His righteousness imputed to us, meaning from outside ourselves. It is foreign to who we are. Our assurance is in Christ and His objective word for us.
Hence, we can say the Sacrament is the Visible Gospel. It is offered to us from outside ourselves. Faith alone receives what God gives from outside ourselves. And what we receive is Christ Himself and His work that He comes with to present to us. It's the gospel given for us from outside ourselves that we receive by faith alone. Apart from reception of Christ, we remain under the law and outside the gospel of Christ crucified for us. What's done for us needs to be received for it to benefit us. Just as the sacrament which offers Christ's work to us is no benefit if we don't receive by faith, though God's promises for forgiveness as His word stands.
Here we stand.
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