Same problem here. FaceID succeeds then last pass can't go past "your account is being recovered". I hope lastpass responds soon. Otherwise it will be time to switch to a different pass manager.
Failing to recover on iOS is NOT A MINOR ISSUE OR A MINOR USER GROUP !!!!
It accepts my FaceID but then the circle just spins and spins. I let it go for about 2.5 hours and it just kept spinning. What is the alternative method? Are you referring to the password hint?