Technically true.

You are right, having the password in the same vault does mean that if the vault itself is compromised they have both. Guess I could move the TOTP to a separate authenticator app but the only other apps I have a mobile only and there are times I need to login without having hands on my phone.

I guess the time based aspect of the TOTP makes it a little more resistant to having someone monitor my keystrokes or clipboard or whatever and capture a relatively long lived secret like my password. So I guess its a comprise I'm willing to make.