@Jason Beckett
Thank you for posting this in Microsoft Q&A.
Yes, to configure Multifactor authentication registration policy you need P2 license.
Same has been explained in below article,
https://learn.microsoft.com/en-us/entra/id-protection/overview-identity-protection Let me know if you have any further questions. Please "Accept the answer" if the information helped you. This will help us and others in the community as well.