Just wanted to provide another piece of feedback for this.
Passkey is actively disrupting my workflow - whereas previously I could simply enter my username and then touch my yubikey while keeping my hands on the keyboard, I now have to try to hit my yubikey while failing to remember that Passkey is a thing, then fumble for my mouse in order to click the tiny USB icon, before going back to my yubikey and feeling frustrated and sad and seeing if there's been an update on this post. :) This happens multiple times per day.
I've since started using Firefox instead of Chrome and explicitly did not install the 1Password extension because the annoyance has outweighed the benefit. 😔
