> are there services which don't support [non-TOTP MFA]?
Yes, there are many which still only support SMS MFA -- and if you meant TOTP-On-Yubi, that's its own can of worms (limited size, [intentionally?] hard to sync or backup, vender lock-in?). I hope passkeys lead to brouder FIDO/U2F support.
Not only are there tons of devices that don't support non TOTP, a lot of them are not optional due to monopoly or oligopoly. Government, for one. Banking is another (SMS "auth")