Chrome Canary: 1Password Not Saving Passkeys

Hi 1Password Support team,
I'm having an issue where I attempt to save a passkey to Chrome, 1Password pops up for saving, but then upon saving it successfully in 1Password, a prompt from Windows Hello pops up, driven by Chrome, seemingly ignoring the callback that the key was saved in 1Password. This can lead to, at the very least, a mismatch of where the passkey gets stored and the record of that with the registering website - 1Password has its copy while Windows has its own copy. The website records that the passkey is saved in Chrome instead of 1Password. I have ensured that the 1Password browser extension is set to manage passwords/passkeys/autofill under Google Password Manager in Chrome.

If I save the passkey in 1Password and click Cancel on the Windows Hello dialog box that come up after, the website does not register the passkey at all and I have to go and remove the one saved in 1Password due to this.

Signing into a site that already has a passkey registered in 1Password still works fine.

This only started happening over the past day or so. KB5062660 did just get installed recently.

Environment:
Device: PC
Windows version: Windows 11 Home 24H2 (Build 26100.4770)
1Password version (desktop): 8.11.6 (81106011) - Nightly channel
Chrome version: 140.0.7314.0 (Official Build) canary (64-bit)
1Password Chrome extension version: 8.11.6.10 (81106010) - Nightly channel

I do realize that based on my setup this could very well be a Chrome issue but wanted to post here just in case.

Please let me know if I can provide anything else to help troubleshoot, such as logs, etc.

Thanks!