Does that answer the question? If you have a password and key for 1Password, and keep both your passwords and authentications for accounts behind that password and key, doesn't that defeat multi-factor authentication? Because if the person has access to your account password within 1Password, then they also have access to your account authentication within 1Password.
Factor means something you have, something you know, or something you are. 2 are needed to access 1Password.
Storing everything in 1 app makes the app a single point of failure. Storing everything on 1 device makes the device a single point of failure. Single point of failure and single factor authentication are different.
You use 1Password as your authenticator as well? Doesn't that make it not multi-factor if it contains both your password and authentication?