The settings shown are for Multi-Factor Authentication (MFA) account lockout, which is triggered by "MFA denials". The lockout threshold is set to three attempts. Among the given options, the Microsoft Authenticator app code is a form of multi-factor authentication. Entering the wrong password relates to primary authentication, not MFA. An email address is a user identifier, not an authentication factor. Therefore, three consecutive failed attempts using the Authenticator app code would trigger the lockout.
The configuration explicitly states the value for "Minutes until account is automatically unblocked" is 30. This setting defines the duration of the lockout period. After 30 minutes have passed since the account was locked due to too many MFA denials, the user will be able to attempt to sign in again. The 60-minute value corresponds to the lockout counter reset, not the lockout duration itself.