You can't enable two-step verification because your account uses single sign-on. We recommend that you use your identity provider's two-factor authentication solution.
The KB article you refer to only applies if you are not using a linked IDP, the error you get indicate that you are, and in that case you should enable two-factor auth on you IDP instead. Also have a look at this KB on how to do it using an authentication policy if you do not want to do it via your IDP.
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