Passkey Beta issues

My Current situation:

I am using a VM which is a clone of the host machine it is running on. I'm signed in with a Microsoft account on both machines.  "Only allow Windows Hello Sign-in for Microsoft Accounts on this device" is turned on for both machines.  I am using MSTSC to remote desktop into the virtual machine, and it is forwarding WebAuthn requests to the host.  Due to this, Windows Hello is not shown in the Windows settings app and the option in 1Password to use it is disabled. I was hoping to use Passkey sign-in on the VM to make signing / push commits a little bit easier since I have a 44 character Master password on my main Family account.

Passkey for my Test account stored in 

• Main 1Password family account
• Yubikey 5c
• Windows 11 24H2 Host Machine

Signed into 1Password Test Account

• Windows 11 24H2 Host machine (Native App)
• Windows 11 24H2 Host machine Web Admin(Firefox)
• Windows 11 24H2 Virtual machine (Native App)
• Windows 11 24H2 Virtual machine Web Admin (Firefox)

I am signed out of my family account on my host and Virtual machines. I can lock / unlock my 1Password test account on both the host and VM using the Passkey I have stored on my host machine and the one on the yubikey. I can auto fill passwords on both host and VM using the browser extension.  

On my host machine, I can use my SSH key to check out, sign, and push commits to my local gitea instance.  When I try to do the same thing on my VM I am prompted to authorize with my Passkey, go through the entire flow, and then says "Unable to sign in. Try again or contact support".

I am seeing some errors in my host event viewer related to an attempt to clone a repo over SSH using the SSH key in my Test account vault

under WebAuthN

WebAuthN Ctap SendCommand completed.
TransactionId: {REDACTED}
Error: 0x8007052E. The user name or password is incorrect.



Ctap GetAssertion completed.
TransactionId: {REDACTED}
Error: 0x52E. The user name or password is incorrect.



Ctap Ble Function: CtapBleProcessCtapCommandRequestCallback Location:
Error: 0x80090035. The device that is required by this cryptographic provider is not found on this platform.



Ctap Ble provider thread completed.
TransactionId: {REDACTED}
Error: 0x80090035. The device that is required by this cryptographic provider is not found on this platform.



Ctap Ble Function: _ProcessCtapBleMultipleDeviceRequest Location:
Error: 0x80090035. The device that is required by this cryptographic provider is not found on this platform.



Ctap Usb provider thread completed.
TransactionId: {REDACTED}
Error: 0x52E. The user name or password is incorrect.



Ctap Nfc provider thread completed.
TransactionId: {REDACTED}
Error: 0x8010002E. Cannot find a smart card reader.



Ctap Function: CtapSrvRpcServerSubscribeForNotifications Location: InProc
Error: 0x32. The request is not supported.



WebAuthN Ngc GetAssertion completed.
TransactionId: {REDACTED}
Error: 0x8009001B. Provider type does not match registered value.

And then some Errors under Crypto-NCrypt

Cryptographic Operation failed.

 Cryptographic Parameters:
     OperationType:    SIGN HASH
     Provider Name:    Microsoft Passport Key Storage Provider
     Key Name:    S-1-5-21-REDDACTED/REDACTED/FIDO_AUTHENTICATOR//REDACTED
     Key Type:    
     Algorithm Name:    

Failure Information:
     Return Code:    0x8009001B



Cryptographic Operation failed.

 Cryptographic Parameters:
     OperationType:    16
     Provider Name:    Microsoft Passport Key Storage Provider
     Key Name:    S-1-5-21-REDACTED/REDACTED/login.live.com//REDACTED
     Key Type:    
     Algorithm Name:    
 
Failure Information:
     Return Code:    0x80090011



Cryptographic Operation failed.

 Cryptographic Parameters:
     OperationType:    16
     Provider Name:    Microsoft Passport Key Storage Provider
     Key Name:    S-1-5-21-REDACTED/REDACTED/FIDO_AUTHENTICATOR//REDACTED
     Key Type:    
     Algorithm Name:    
 
Failure Information:
     Return Code:    0x80090011