Yes, that is stated in my original question. However, some of these managed Apple accounts work, and some do not, yet ALL are setup identically; These are all managed Apple IDs. Why would some work, and some not?
For example, take two identically setup accounts. Both are managed Apple IDs. Both have the exact same setup on ASM (instructor). Both have an iPad of the same generation. Both have identical MacBook Air M2s. Both are signed into their managed Apple ID on the devices properly. Both accounts do not support 2FA. Systems for both are up-to-date with MacOS and iPadOS revisions that support the features in question. (Note; we found this bug last year, and both MacOS and iPadOS have undergone several revisions during that time. This bug has survived all revisions to date, so this is not an OS-revision-specific bug.)
However, when:
randomteacher1@myrandomschool.edu uses the Screen Mirroring function to add their iPad as an extended display it works properly.
and when:
randomteacher2@myrandomschool.edu use the Screen Mirroring function to add their iPad as an extended display it displays the above 2FA error and refuses to function.
So clearly this feature does not actually require 2FA or it would not work for randomteacher1.
How do we make this feature function properly for all of our staff?