I did ask in Discord if anyone else is having the same issue:

The 2FA does not work but you can recover your balance Guide to Recover ZCL from a 2FA Electrum Wallet – Windows

Have you accidently set up your wallet as a 2FA wallet and now are unable to send coins else where? Has sweeping/ importing your private key not worked for you? As long as you sent the coins as a Transparent (T) address, this is the guide for you! If you used a Private (Z) address, follow up to step 4 and hang tight for when we release Electrum support for Private (Z) addresses.

1. Create a new standard wallet and restore the 2FA wallet using your “seed” codes. DO NOT password protect this wallet.
2. Disable the 2FA feature when presented with the option.
3. Navigate to C:/Users/YOUR-NAME/AppData/Roaming/Electrum-zcl/wallets. Open the new standard wallet file with Notepad.
4. You will need to gather the 2 private keys and one public key. To find this easily, press “CTRL+F” and search for “xprv”. Copy the 2 “xprv” values as well as the last “xpub” value. You will need these in a later step.
5. Create a new “Multi-signature wallet”. Select “From 3 co-signers” on the first slider. Select “Require 2 signatures” on the second slider.
6. To add the first co-signer, click “Use public or private keys”. Enter the first xprv key in this box.
7. Add the second co-signer via a private key also.
8. Add the third co-signer with the public key. Complete the set-up.
9. Your wallet funds now have the ability to be sent from the multi-signature wallet.

Credit to @Entropyless and @daniel12 on Discord