TOTP and any sort of one time code authentication are just as phishable as passwords. Perhaps the biggest benefit for most people using U2F or FIDO2, is the large resistance to phishing.
This is because of how the whole ecosystem has adopted FIDO2. When a FIDO2 key signs an assertion for a website, it includes the domain in the signature base, e.g. "example.com". The browser enforces that the request to the FIDO2 key always uses the correct name of the domain you're on.
If you accidentally go to a fake website, "exaample.com", then the key will make a signature for "exaample.com", which is invalid for "example.com". Nothing can be phished to get around that, unlike OTP codes.
Even if you have other 2FA options linked to your account, as long as you're using your FIDO2 key, you gain this benefit. Very strong benefit for both individuals and enterprises.