Yeah you may want to leave it disabled for now, Lemmy's 2FA implementation is still a work in progress.
If you do re-attempt it make sure you are using a 2FA device/software with SHA256 support and try to test it in another browser/device before logging out. I don't know about Microsoft Authenticator specifically but it sounds like it doesn't do SHA256 which is why you don't see it give you valid codes. The same thing would happen with Google Authenticator.
See the earlier post https://lemmy.world/post/1288267 (in [email protected])