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I understand why they are doing this, though, it's dramatically less work for them to clean up with Steam Guard.
I would have probably taken advantage of an authenticator system regardless, but that doesn't mean I like to be forced to do it.
Talk with Steam and they'll fix it. Sooner or later you're going to be locked out of your account because Steam Guard asks you every now and then to input a code to get online.
It's a much bigger deal that you lost your phone. You should probably adjust your priorities.