Absolutely. But also, in such setup, the security benefit of 2FA/OTP codes are negligible at best since there are no conditions under which only one factor could be compromised without also having the other factor leaked (assuming you're using unique passwords for each identity, which is the entire point of a password manager).

However, I suppose it could be used for bypassing the inconvenience of mandated 2FA scenarios (to the dismay of your company's security team).

> If my password vault is compromised it's game over anyway.

There are ways you could make a vault compromise not mean a complete/irreversible takeover, but that would either give up breakglass access as you say or add complexity and reduce availability.

> The point of using 2FA for me is to protect me against my password being compromised since it's a long_lived access key.

In which situations on your setup would a unique password compromise not imply there's also been a TOTP token/seed compromise?