Can't Enable Passwords on iCloud for Windows

I am using iCloud for Windows (v12.2), and I've logged in using my Apple ID.

I am trying to enable Passwords, but the items is greyed out, saying: "Requires approval from your device". I press the "Approve..." button, and a pop up appears where I enter my Apple ID and password (again). After that the pop up just closes down, and the Passwords item is still greyed out.

I have two-factor authentication enabled on my account. The other question asking about this issue does not have a posted solution. Thanks.