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I've read horror stories about people who's personal and seller Amazon accounts were conflated. As such, I recommend keeping AWS and retail usage completely separate. Different email, different card, different name too if possible.

I have had to log in on a different machine twice recently because of this.

That's odd indeed. I have a different 2FA seed for my retail and AWS account, but I've never tried using the wrong one but it's conceivably they allow you to use either

I wasn't able to use either though, as I said above. My retail 2FA TOTP failed for my retail account, but my AWS 2FA TOTP worked for my retail account (and for my AWS account).

So something shady is going on.

Well what's even more odd is that sometimes they do and sometimes they don't.

Yes! I had 2FA set up on AWS when they announced it for retail, and after I set that up, my retail one was required to log into AWS.