ESP always boot from app image. During OTA rest of flash is used as temporary buffer to perform OTA.
So on 1MB chip the real usable space can be:
OTA upload on 1M devices using an intermediate firmware (automatic two steps)
Workaround is to perform 2 step update:
Use ESPEasyUploaderMega as described in 2.0+ firmware on 1MB modules
DRAFT:
After flashing AP with SSID name like ESP-C06F65
will be setup.
There is no auth.