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Dusting off an old iMac and it was hanging at 50% progress bar during start up. Since I don't need anything on it I'm trying to reformat.

I've booted into recovery mode and erased the drive. Then selected to install new OS. Chose the drive (it's also showing a locked recovery drive). By then it asks me to log into Apple Store. I do and it's saying wrong password. But then my phone asks for permission for login with my account. I approve and it still doesn't let me in on the iMac. Phone is giving an auth code but no where to enter it on iMac.

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The version of the operating system of the recovery partition is probably lower than 10.11.0.

According to Apple you have to append the auth code to the password then:

What if I use two-factor authentication on a device running older software? If you use two-factor authentication with devices running older OS versions, you might be asked to add your six-digit verification code to the end of your password when signing in. Get your verification code from a trusted device running iOS 9 and later or OS X El Capitan and later, or have it sent to your trusted phone number. Then type your password followed by the six-digit verification code directly into the password field.

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