MS Authenticator app backup is confusing

This statement appears in the authenticator backup settings:
"Existing Microsoft Authenticator accounts: If you've already set up accounts in the Microsoft Authenticator app, the app won't be able to recover your backed-up accounts. Preventing recovery helps ensure that your account details aren't overwritten with out-of-date information. In this situation, you must remove any existing account information from the existing accounts set up in your Authenticator app before you can recover your backup."

I do not understand this. I use Authenticator on an iPhone for many things including both my Microsoft personal accounts (including the one set up with iCloud), a Microsoft work account, and some other things.
If my iPhone breaks, I will not be able to remove any accounts from it before restoring to another device. I use it for both my personal MS accounts, a work MS account, and other things. One of those two MS personal MS accounts is associated with my iCloud account for backup. In the case where my current phone with authenticator setup becomes unavailable, can I not restore iCloud backup to another device using the same appleId and have the authenticator accounts restored there? If not what is the use case for the backup? It would be useless if you cannot simply restore it to another device using the same iCloud account.