If WIFI is disabled and the network is strictly ethernet, assuming that no malware is deployed and a hacker never has physical access, can packets still be sniffed somehow?
This depends on the devices in the network, the installed software and the connections to other networks like the internet.
If there are security issues - like remote access with weak credentials or software which can be exploited while communicating with the outside world - then the attacker might get logical access to systems on the network. Only if there is no direct or indirect (via other networks) access from outside possible, then the attacker would need to get physical access to execute code on vulnerable systems or to attach its own systems to the network.
Once on a system the attacker needs to sniff and exfiltrate the data. Doing a packet capture can be easily done by "Living off the Land", i.e. using legal and maybe already installed software - no malware needed. The same as true for sending the sniffed data to some external system.
Had a security concern with an unknown device on the network.
If the device is unknown to you then it might even mean that the attacker has successfully placed a new device in the network - which means physical access. This would even be worse than what I described.