you missed the attack. a keylogger doesn’t capture the TOTP (and fully synchronous 0-reuse TOTP isn’t possible on global scale, instead you catch it in audit) a keylogger captures the master password to the pwm that stores the TOTP secret.
But then they have to have physical access to your pwm or an export of it. If it's cloud-based, I'd have to assume there's some additional auth done for non-approved devices, or it's a bad cloud pwm.
