Is this some sort of a convenience feature hidden behind a paywall to justify purchasing their subscriptions or does generating the codes actually cost money? If the latter is the case, how do applications like Aegis do it free of cost?
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Not sure I agree.
Yes, your password manager is a single point of failure this way. But I would argue any non-SMS based TOTP is better than none, so if a higher percentage of people use it the easy way instead of not at all I consider that a win.
After all, you would still not only need the password but also access to the manager which technically is more than one factor.