Trending @Accenture; NEED HELP! REGARDING MICROSOFT AUTHENTICATOR

My phone is currently running with Android 12, till last few months I was able to use Microsoft authenticator application without any issue, but now Microsoft authenticator passwordless sign in is not working, whenever I am trying to set passwordless sign in its giving me you sign in is blocked.

Due to this I need to enable password to login in the eTms buddy app for shuttle service. Will there be any issue if I enable password and use password login?