Does this break SMS 2FA?
SMS 2FA can bite you in the ass. Since the phone is with you all the time, there is a higher chance of something happening to it that makes it damaged enough for you to not be able to use it. Now, you are in possession of the password, the IP is the same as the one you signed up with, you have access to your e-mail, but you still cannot access your account. You contact support, you tell them the same thing. They will…
This way, the company using SMS 2FA has effectively outsourced this recovery path to the phone companies. Instead of handling recovery (and potentially liability for getting it wrong) themselves, they can just tell you to go recover the phone number. And when the phone company gets it wrong, you get stuck in a nightmare of finger-pointing instead of having a clear culprit to hold responsible.