That's not correct, at least depending on your threat model. Having a password stored + totp in a password manager does give the advantage of protecting you against the loss of the stored password itself.
Specifically with 1password I have all three factors you've mentioned above. 1) knowledge - my vault password is memorized, 2) inherence (?) - biometrics used to unlock the vault on trusted devices, 3) possession - my account requires a security key to unlock.
Specifically with 1password I have all three factors you've mentioned above. 1) knowledge - my vault password is memorized, 2) inherence (?) - biometrics used to unlock the vault on trusted devices, 3) possession - my account requires a security key to unlock.