This is a feedback loop. And I have been dealing with it myself. Honestly this is a common issue for new coders. I am pretty sure they inserted a workaround without actually addressing the real issue. Because I noticed if you login elsewhere you can bypass this. But it's incredibly lazy and absolutely unacceptable that Microsoft hasn't properly fixed this issue. Especially since they plan on making authenticator mandatory at some point. Listen Microsoft, fix your **** and stop being lazy or people have every right to sue you. When we can't properly use our accounts or devices because of decisions you as a company make, guess what? You become responsible.
There is no reason why I am being told to authenticate authenticator, it should only require a password. Tying the authenticator itself as a necessity to login to authenticator should be as apparently stupid to you as it is to everyone else dealing with this issue. It's not fixed.