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I deleted my Microsoft Account password 2-3 years ago, when Microsoft first started offering it.
The Microsoft Authenticator app is a normal OTP generator for all non-Microsoft accounts, but it uses its own protocol for authenticating Microsoft accounts. I have it set up with half a dozen different accounts, as I have private and work accounts, plus admin accounts. It works very well and I have it set up on multiple devices, as a backup. It synchronizes itself over an MSA as well.
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Killed my password years ago as well. Do you get random auth requests from the app often? I get about 2 per week out of the blue on my personal account. I recall one website of dubious origin where I signed up for an account using my Outlook.com address and I immediately received an auth request.
Retention requirements can really blow up a budget for an IT department. I had one client that entered a new type of business which had strict requirements for record retention - they had to go from a 14 day retention policy to 365 days for TB worth of data. We ended up offloading much of it to Wasabi which saved a bunch of money, but still hurt.
I think I have had one single attempt to break into my account since I added the authenticator to the account. I don’t think I’ve had any attempts to log in from my work work account, that I can remember.