Greetings William Shelburne,
Hope you are doing well!
Many thanks for the kind response. May I please confirm Security default is turned off in your organization? To check this kindly Sign into the Microsoft 365 admin center (https://admin.microsoft.com/) with your admin credentials-->Show All-->choose Identity under Admin centers
Kindly click on Overview-->Properties-->click on Manage security defaults-->Make sure that Disable is selected then check if it will make any difference

Kindly note that with security defaults disabled, your organization is vulnerable to common identity-related attacks.
We are looking forward to your response! Please feel free to let me know if there are any questions. I will keep assisting you based on the information you provide. We sincerely appreciate your patience and cooperation. Thanks for your precious time. Have a nice day!
Best regards,
Inema | Microsoft Community Moderator
THIS WORKED! Thank you.
This is clearly a bug on Microsoft's end. In the first set of instructions Inema provided above, all my settings showed that Multi-factor authentication was disabled. However, this setting buried in a completely different place, was Enabled. Changing it to Disabled as instructed fixed the issue.
Microsoft needs to change this where all these settings are in ONE place, and that the state of one setting is accurately reflected in BOTH places. If one shows as enabled, they both need to show as enabled because that's the behavior we are experiencing.