Hi Magik,
Based on my test, from my side, I can access the public-facing website properly without pointing to Office 365 login page. Could you confirm if the public-facing website is working properly now?
Actually we encountered some issues regarding SharePoint Online public facing website recently. The issue has been resolved, and the service is restored now. You can check the Service Health Dashboard <https://portal.microsoftonline.com/ServiceStatus/ServiceStatus.aspx> for your tenant to get more additional information.
If there are any further assistances about the issue, please feel free to post back.
Thanks,
Ida Qiu