Your Hotmail account is locked because Microsoft flagged suspicious activity and requires identity verification. If SMS verification isn’t working and no backup method is available, you’re stuck in a loop because the system can’t confirm your identity.
What I suggest is:
Use the Microsoft Account Recovery Form at https://account.live.com/acsr and provide as much accurate info as possible (recent email subjects, folder names, billing details if applicable).
If recovery fails, contact Microsoft Support for escalation via https://support.microsoft.com.
Once access is restored, add multiple recovery options (backup email, phone number, Authenticator app) to avoid this in the future.
Happy to help!