But how is that no the entire point? If your 2FA is a proper device, like a Yubikey, the attack surface is tinier than tiny and the device ensures that your secret never leaves the device.
We did see cases of passwords managers getting compromised. We haven't seen yet a secret being extracted from a Yubikey.
So where you say you consider that your software (password manager) getting compromised is total compromise, we're saying: "as long as the HSM on a Yubikey does its job, we have actual 2FA and there cannot be a total compromise".
Could you explain better?