To me it sounds like you have already started account recovery. From: How to use account recovery when you can’t reset your Apple ID password - Apple Support
"In some cases, you might be able to speed up the account recovery process or reset your password immediately by verifying a six-digit code sent to your primary email address. You might also be able to shorten the wait time by providing credit-card details to confirm your identity. If you’re given this option, an authorization request goes to the card issuer." - see the document for more details.
The phone should work as a phone but as the article says, you shouldn't try to use anything that requires the Apple Account to be active.