How is it not a second factor ?
It's something else that is unrelated to your password that you have to provide in order to log in, is that not the definition of a factor of authentication ?
Because it's phishable ?
It’s a second password - not a bad thing, but still vulnerable to many categories as attacks.
Passwords are "something you know". TOTP is "something you know". It wanted to be "something you have", but it's not. Proof: I can put TOTP tokens into my password manager now. Anything that can go into my password manager is proved to be "something I know" by the fact I can put it into my password manager.
Incidentally, passkeys go into my password manager too. You can probably work the math from there.
(I'm heterodox on this matter, though. I don't believe in the existence of "things you are" and "things you have". I think it's all ultimately just "things you know" and it's all better analyzed in terms of the cost of knowing and proving knowledge, and that the 3-factor framework for authentication is wrong.)