I personally am fine with this.
Are they finally showing a proper QR code when setting it up?
At least that was the case for me. I removed 2FA to make the authy key invalid and activated it again. and they do the normal TOTP setup stuff during setup
That sounds good. I still have a working login somehow, but unfortunately I can’t disable authy, because they want a code to do that, and they won’t accept those that I have, even though it was working when I have set it up.
Also, thinking about it, the prompt does not give an option to use a recovery code, but only to try with the phone number (which is dead by now), or contact support.