TOTP should NOT be stored with your passwords. I know some password managers give this option for convenience but the point of TOTP is it’s something you have (traditionally a physical device) that’s separate from something you know (a password). When both of those things are stored on the same place then it effectively just becomes multiple inputs for 1FA.
This just means the poster above doesn't consider a compromise of their password manager a risk. It remains 2FA because the key material for the OTP does not leave the password manager, whereas the password travels down the wire. For a start, this makes it hard to brute force the account for even an inept provider.
I also have 2 db (KeepassXC), I have my low security db (like games, online stores, forums...) and my high security db (like AWS credentials...), the second one requires a hardware key for unlocking.
But some websites (like some games) in the first category have mandatory 2FA.
The biggest reason to keep TOTP in a password manager is that people are more likely to use it, which is a much better security stance than having a better system that no one wants to use.
For example, if you use 1Password to fill in your creds on a website with a stored OTP setting, 1Password puts your OTP on the clipboard so that you can just paste it into the next page without taking any other steps. This has driven up adoption immensely at my work.
