You must be thinking about the difference between these two ways of Account Live password reset. Well, both the methods lead to the same destination; however, the way of resetting the password is different in these two. You can choose the first one if the Microsoft account has the two-step authentication feature is on.
In case, if you do not have an alternate email, then create a new email with Outlook.com, and the option for signing up for a new ID is given at the password reset page only. For further information on Account Live password reset process, you can contact Microsoft customer support team at 888-315-9712.
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