otp from mac works but otp from android app doesnt?

I think primary reason people will use 1password is to input login info to some internet based services, so basically all will have to have internet even before going to their login pages. Very small cases, people will use credential with apps that doesn't require internet to work.

Server(of an org, that too of reputable one like 1password) getting down is also very unlikely and if it does, I haven't come across, so far, any public facing service to exist without redundancy planned already to handle disaster/failover situations.

But, yeah, I and most people will do like to have this generated at device locally without reaching to internet. However, this convenience, perhaps we should be ready to sacrifice if we want kick out the inconvenience of forcing our all devices (wherever we want to use 1password) to be in same timezone always. Also, not to mention, consumer devices are much inferior compared to servers, allowing the possibility of device clock getting offset after few years.

And ofcourse thanks for the info on passkeys taking over TOTP in future.