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We received an email from Microsoft a couple weeks ago that states "discontinuing Multi-Factor Authentication SDK", does this include phone factor? If so, what would be a few alternatives?

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Hi there, looks like you already got an answer in the comment above. For future reference, StackOverflow is for coding questions, these types of questions should be posted in a sister site, perhaps meta.stackexchange.comseeiespi

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As per the Microsoft Document Microsoft had discontinued support for the SDK since November 14, 2018. After that time, calls to the SDK will fail.

You need to configure a conditional access policy for your application that will prompt users to do MFA. For more information please refer the document