Getting "User is not enrolled with OTP", but user is actually enrolled

I am trying to setup SMS MFA OTP.
After using email and password I am able to get mfa token.

Then according documentation : Authenticate Using the Resource Owner Password Flow with MFA

I am getting the list of enrolled authenticators (/mfa/authenticators), sms authenticator is present in response.
Then I do api call to get the sms (/mfa/challenge) providing previously got sms authenticator id.
After that I see OTP code in sms on my enrolled phone. When trying to confirm the 2fa, passing otp and mfa token (/oauth/token), getting error that “User is not enrolled with OTP”, but I can see in dashboard that it is enrolled.

How to fix this behavior?