Why is password chosen over passkey?

My bank has a choice of password or passkey. I have *both* in the vault.

Why, when 1Password correctly choses the username, which is the first step whether I am going to use password or passkey, does 1Password choose password, pretty much defeating the whole point of a passkey, as I have to do a 2FA challenge now. It tries to log me in withe my password, triggers the 2FA and I have no chance to use my passkey.