Cannot Approve Windows Device for iCloud Passwords

3 years on and this is still a thing apparently:

I have been trying to get my passwords saved to my iCloud onto my computer. When I go to click 'approve' on my iCloud app, I can sign in successfully, but problems arise when it comes to verification, it always seems to fail. I can enter the code, but it just fails or accepts my password but does not actually authorize and activate the passwords.

It's not a sign-in problem but a problem attempting to approve the device I am using for use with icloud passwords in the icloud app.

• I am successfully signed-in to icloud
• In the Icloud settings window, I click Passwords -> Approve
• I'm being prompted to enter my apple id password
• I am being taken through multifactor authentication.... works... aaaaand:
• back to square one: password sync options greyed out, no error message whatsoever, see screenshot below.