Microsoft 365 features that help users manage their subscriptions, account settings, and billing information.
Hello,
Microsoft always recommends that account users have at least three verification methods. So even if one method gets deactivated, they can use another method to sign in.
If you only have the recovery Phone number and it is not active, you will have to replace the Security information.
Select - I don't have any of these on the Verify Your Identity Screen.
Complete the Account recovery form, and if your identity is verified, you will have the option to update your security information.
Note -
If you remove all of your previous security Information and replace it with something new, your account will be put into a restricted state for 30 days.
Reference -