Microsoft is gradually phasing out SMS as an authentication and account recovery method for personal Microsoft accounts. Instead, Microsoft is moving toward verified email addresses and passkeys.
Since you removed your previous phone number and the option to add a new one is no longer available, this may be related to this change.
I recommend adding a verified email address and setting up a passkey as alternative security methods for your account.
For more information:
https://support.microsoft.com/accounts-billing/manage/microsoft-to-stop-sending-sms-codes-for-personal-accounts