Then if the password manager is compromised, the second factor wouldn't add any protection over just a password.

Then again, people that use password managers at all usually have stronger passwords and less password reuse, so it can be an acceptable tradeoff.

In my case it wouldn't anyway. Almost all of my 2FA is tied to my password manager as well. I am sure I am not alone in this. It is kind of scary to think about though.

I do the same but, for me, the threat of my password manager being compromised is much much smaller than the threat me not enabling 2FA out of laziness or the concern I might lose my 2FA codes. I keep my main email codes out of the password vault and that is enough to calm my nerves.

Not everyone has the same risk profile/tolerance, but I just wanted to say that I don't think anyone should feel bad about doing the best they can, even if that stops short of the absolute best.

Aye, but it assumes the company isn't keep the password in plain text.