When setting up the authentication when it asks you to set up Microsoft authenticator there should be a drop-down at the bottom of the page that says use another option that will allow you to use a phone call or text message as your chosen method of authentication.
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You have the right not to use your personal hardware for work, and the employer must provide the necessary equipment to accomplish your job.
Ask if you could get a hardware token (ie: Yubikey Security Key) instead of using Microsoft Authenticator to fulfill the security requirements. It's low cost and doesn't require a subscription unlike a cellphone plan.
...it won't let me edit my other comment but I wanted to add that YES using MFA is demonstratively far more safe than any password you can set.
With a multi factor enabled you could literally give your password out and people could not access your account without being able to complete that second layer of security.
Do like a friend of mine. He has a 15 dollar a month phone(mint mobile) that he uses for all his job related bullshit. Its all it does and he has no personal accounts on it at all. It kinda sucks that they insist on him using his own equipment for it but its the cheapest way to keep them out of his personal life.
If you don't care about the money you get paid every fortnight then go ahead. Nobody cares! For employers , you are just a number and for you ,employer is the means to get paid.
If you don't need the money then fuck it.
I am in IT and I feel like I speak for the industry we don't care. Some of my customers have regulators who make arbitrary and capricious decisions with a minimal understanding of infosec but we have to keep the customer compliant.