It's not a password.
A password/passphrase/passcode is something you know.
A hash for a TOTP is something you have. 2 factor means something you know and something you have (or something you are): https://dis-blog.thalesgroup.com/security/2011/09/05/three-f...
(And yes in theory you could remember the hash, and have a custom TOTP client that lets you enter it in. But unless you do this it is a theoretical argument only).
All I need for password authentication is the password and a device that can generate a one time proof that I know the password.
TOTP just seems more secure because the password is never displayed to the end-user.