Might as well not use a YubiKey at all. This just eliminates the benefits a YubiKey would provide. This reminds me of the banks that offer TOTP with fallback to SMS - just turns the "security improvement" into a waste of time and effort.
> We chose [Yubikey C NFC] for a few reasons: [...] 3. It doesn’t support OTP mode, so there’s no “Yubispam” to deal with
I think it does support OTP mode? Using one of these right now and it definitely supports OTP. You can turn it off, but that's not particular to the C NFC.
An aside: YubiKeys are great, I love them... but they need to have a display to show what, precisely, you're authenticating with, or signing, etc. You can never trust your computer's display - Ledger/Trezor's hardware wallets have the right idea. IMO current standards fall short in not providing this information to the hardware authenticator.