I also get the same loops as OP. E-mail sent, authorize, new e-mail, new authorize. It seems like it's a dead end.
Blockchain teams answer
"Hello,
I'm sorry to hear about the trouble you are experiencing. Unfortunately we are unable to help recover or reset passwords. This is not a matter of policy but simply that it is impossible for us to reset a wallet's password due to the way the file encryption is designed. Please try every possible password combination you may have used.
You can use the legacy mnemonic to reveal the password at the time of recovery phrase creation here,
https://login.blockchain.com/wallet/recover-wallet Keep in mind the mnemonic recovery phrase only reveals the password at the time of phrase creation, if the wallet’s password has been changed since the recovery phrase was created then the information it provides may be inaccurate and out of date.
The older version of our wallet has been discontinued. This transition period was ongoing throughout most of 2016, and now upgrading your wallet to the latest version is required to access funds. You can learn more about the latest version via this link:
https://support.blockchain.com/hc/en-us/categories/115000851246-Wallet-Functions.
Wallet.aes.json backups can be imported here:
https://login.blockchain.com/wallet/import-wallet. Please note, this process does require the correct wallet password in order to decrypt the file.
If you do not have the correct password or an accurate recovery phrase, then access to the wallet and any funds it may contain has been lost.
You can read more about how our Blockchain digital currency wallet works -
https://www.blockchain.com/learning-portal/how-it-works"