Two factor authentication code won't populate on mac computer, states password is wrong when it's right

I need to upgrade my computer. I type in my apple id and password into the app store (THAT WORKS HERE) and it sends a message to my phone to approve the log-in. I approve it, it gives me a code to enter. THERE IS NO WHERE TO ENTER THE CODE on the computer. The computer tells me to re-enter my log information and enter the code. I enter my username and password, hit enter, and then it tells me my password is wrong (even though another notification is sent to my phone to approve the log-in). I cannot turn off two factor authentication (which is the problem).

How do I fix this? I tried my daughter's account too thinking it could just be something screwy with mine, NOPE! Same issue - won't let me type in the 6 digit code.