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I highly recommend logging into the XBox website to confirm your account information is correct, as well as your account not being on lockdown because someone tried to hack it or you entered the wrong info too many times. With your 2FA not working properly, this might be the first thing you should do before removing the bad credentials stored on your PC.
Basically, your PC stores your login credentials in a completely different folder from your game, and the game borrows them from that folder to login. When you enter your login info into the game, sometimes it won't update the credentials and it keeps loading the old ones. Other times, the credentials will randomly just stop working and need to be re-entered, but because of one reason or another your PC just isn't using the right credentials. The game isn't smart enough to know which credentials are right vs wrong, and verifying your game files or uninstalling and reinstalling won't do anything to fix your credentials.
To fix this, go into your PC Settings, go to your Credentials Manager, select Windows Credentials, and delete the most recent XBL|DeviceKeys. Some people have had to delete all credentials that start with XBL to get this to work. The next time you open up the game, it will force a first-time login page, which will create a new XBL|DeviceKey that will be saved in your PC's Settings. You should only have to fix this once, because once you're properly logged in for the first time the game will just automatically load in the credentials saved on your PC.