In Logon window the user choose to load the first password from a cyphered wallet on a pen drive (the cyphered wallet on a pen drive has been created previosly by Windows, which even created a 'Long Casual Password' for Logon)
So the system:
A. Sends to a notification to th App on User's smartphone and the User can insert his 'Short password'
B. Then the system accesses to the cyphered wallet on User's pen drive and retrieves the 'Long Casual Password' for logon
Microsoft is following different policy and it is removing password and technologies like Windows Hello Face recognition, PIN , etc. The architecture of Windows is different. You will use 2FA because login page is accessible remotely from internet. However, in case of Windows, you will need to have physical access to the system and you may use other methods like BitLocker.