It seems like there has to be a way to escalate past this issue. If I call to report my phone as stolen or destroyed, it makes no sense they'd still insist on using that device for 2FA. It seems like this is one reason, if not the main reason, AT&T has the account passcode.
I assume, if I switch to eSIM, my current SIM would still work in the future if needed — i.e., it's not rendered obsolete by the switch? If so, I'll tuck it into my briefcase or suitcase.
Regardless, don't carriers basically give SIM cards away? Seems like anyone worried about theft/damage while abroad could pick up an emergency backup SIM and tuck it into a bag.
The main reason for a passcode is that someone would walk into a carrier store, fake ID in hand, and they used to transfer SIMs and people would get their 2-factor bank/email/etc accounts hacked. So they need a passcode now and a person needs to know it to transfer, or they can do 2-factor. In times past my parents have reset the passcode basically every time but they need their phones to get the ability to reset the passcode.
If you know your passcode and you have photo ID you’re supposed to walk into a carrier store to get a new SIM, eSIM or physical, if you lost your old phone. But of course if you’re overseas then you can’t just walk into a store.
And yes, you can switch back to physical SIM. They wouldn’t make it so you can’t switch back to most phones. And most phones don’t have eSIM, just Pixel, Samsung (flagships), and iPhones.
Your old SIM card is good for as long as they accept its security. Periodically new SIM security gets implemented, and it means old SIM cards are obsoleted.
Slight warning, I don’t even know if they will activate a SIM when it’s outside of the AT&T network. Some carriers allow this, especially European ones. But some posts on reddit, regarding transferring physical SIMs, say they can’t transfer when not on the actual AT&T network. This is all just kind of hearsay, so grain of salt I guess.
My advice: 2nd phone, iPad, etc, some other device is a good backup if you’re really at risk of losing your main. This SIM switching overseas, doesn’t sound too promising. Google Voice lets you use a Voice line on every device you have. Also lets you use Find My iPhone and disable it remotely. Then return back and get a new phone and SIM in store.