Bug: no keyboard to type in PIN code of YubiKey 5C NFC (when using USB-C)

I use a Yubi key almost just like yours.
If it is NFC capable you do not have to use the usb-c with a newer iPhone especially.
So you can use NFC the same way you would use a credit card with a chip in it at a walgreens checkout terminal similar wireless technology.
Make sure you registered your hardware key for 1Password first.
Try signing in at 1Password website first to see if it works or setup already.
If it ask you to select a passkey or Hardware security key their is a bug on all websites currently using a hardware security key to sign-in having to do with iOS17, so instead when asked for the key hold the key close to the back top of your iPhone and it should work without selecting an option.
When that bug gets fixed you can go back to selecting which option to sign in or maybe this is not a bug and it will be the new way.
If your trying to use the hardware security key for the app and it want take nfc then yeah the usb-c would be the alternative option.
If using the usb-c when if it ask for a code, long press hard with your thumb on the y logo on your key at same time.
That way may not work either.
I have never had to use usb-c, but I read you might have to long press the y logo not sure if that is true or not.