I have the same issue. Google does not recommend the 2-step procedure you listed. Someone at Adobe needs to write a new Email interface. the current one does not seal to work without lover your security below what is recommended.
Tip: App Passwords aren’t recommended and are unnecessary in most cases. To help keep your account secure, use "Sign in with Google" to connect apps to your Google Account.
Tip: iPhones and iPads with iOS 11 or up don’t require App Passwords. Instead, use “Sign in with Google.”