I'm facing the same problem and not able to find the solution.
Thanks for the comments! I sent this message thread link as a Twitter/X DM to LastPass Support. They "reset" something ... and I tried the new password creation process again and it worked this time. I would suggest DM'ing them directly and referencing my customer number here to have them do the same. I hope that works for you too!
So am I. I tried to recover the password. Selecting YES prompted the browser to not have a one-time password. , select NO to prompt that the browser does not have the extension installed. Lasspass forced me to change my password to 12 digits. My password is correct but I can’t log in.