Account Recovery Deadlock - SMS Second Factor throwing server error "method not working"

The error message indicates that the SMS verification method is currently blocked or unavailable on Microsoft’s side, not on the device or network. When this happens, recovery is limited to the automated options already available on the account.

Key points from Microsoft’s guidance:

1. Blocks on verification methods are automated and can be caused by:
   • Unusual activity or sign-in patterns.
   • High volume of verification requests.
   • Other risk signals or traffic from a specific region or network.
   These can lead to a temporary block where a specific verification method (like SMS) returns errors such as “That verification method isn’t working right now.”
2. Recommended actions when a verification method is blocked:
   • Use a different verification method already on the account (for example, the recovery email or another factor) if the system offers it.
   • Try a different network (switch between Wi‑Fi and mobile data) and device, which has already been done in this case.
   • Wait without repeated attempts: Microsoft explicitly advises waiting at least 24 hours, and up to a week, without repeated retries, because repeated attempts can reset the lockout timer and prolong the block.
3. If all verification methods are blocked or unusable:
   • If two-step verification is enabled and none of the configured methods can be accessed or used, support agents cannot override the system, cannot send manual reset links, and cannot change security info. This is by design to protect the account and its contents.
   • In that situation, the only supported path is to wait for the automated block to clear and then try again, or, if offered during sign-in, select “I don’t have any of these” and follow the prompts to replace security info. Replacing all security info puts the account into a restricted state for 30 days before normal sign-in is allowed.
4. When password is not known and security info cannot be used:
   • Use the Microsoft account recovery form as described in the guidance. This requires filling out detailed information about the account and is the only supported self-service path when normal verification fails.
   • If two-step verification is turned on and none of the alternate methods are accessible, Microsoft states that agents cannot help beyond the automated recovery form.
5. Manual escalation and identity proof:
   • For consumer Microsoft accounts (personal Outlook/Hotmail/Xbox), frontline or higher-tier support cannot manually verify identity using billing statements or mobile contracts and cannot bypass two-step verification or blocked methods.
   • Account recovery and security verification are fully automated for these accounts; moderators and support agents cannot unlock or reset the account outside those flows.

Given the scenario described:

• Continue to avoid repeated SMS attempts for at least 24 hours (and up to several days) to allow any temporary block on that method to clear.
• When retrying, use the recovery email method first if it is offered, and then follow any on-screen option such as “I don’t have any of these” to replace security info if available.
• If sign-in or reset flows fail completely and the password is not known, use the Microsoft account recovery form from a familiar device and location, and provide as much accurate historical information as possible.
• Be aware that if two-step verification is enabled and no verification method can be used, Microsoft’s documented position is that support cannot override the protection or send a manual reset link.

References:

• Troubleshoot Microsoft verification code issues
• Common problems with two-step verification for a work or school account
• Help with the Microsoft account recovery form
• Microsoft account has been locked
• Why is Microsoft texting me?
• My personal hotmail account hacked by hacker with authentication app enabled. - Microsoft Q&A
• Locked out of my Outlook account and recovery options not working - Microsoft Q&A
• Can't sign in to my email - Microsoft Q&A
• Please confirm my e mail address as <removed PII>@outlook.com - Microsoft Q&A