A cloud-based identity and access management service for securing user authentication and resource access
As far as I can tell, the behavior you are seeing is consistent with the way privileged roles and the Authentication Administrator role work in Entra ID. The Authentication Administrator role allows a user to manage authentication methods like resetting passwords and MFA settings, but it has scope limitations. Specifically, an Authentication Administrator cannot manage authentication methods for users who are assigned certain privileged roles, such as Global Administrator, Privileged Role Administrator, or other highly privileged roles. This is a built-in safeguard to prevent elevation of privileges or circumvention of security controls.
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hth
Marcin