macOS 15.2 Password App interfering with 1Password Passkeys

I have an issue with the macOS Passwords app interfering with the 1Password passkey autofill in Safari. Here is an example screenshot. I have Autofill turned off in the Passwords app. This is happening on both my MacBook Pro and Mac- Mini. If I click the Cancel button on the Apple Passkey prompt 1Password Passkey Autofill does not respond. Sometimes the Apple Passwords app does not show up and it works fine, however If I refresh the browser it shows up.

1Password Version: 8.10.56
Extension Version: 8.10.55.2
OS Version: macOS 15.2
Browser: Safari