Not in my experience. In the Admin console I said do not use Passkey and it still created it as a Passkey :( This was about a month ago, so maybe they fixed it. Turning off FIDO2 made things work.
Keys that do not support resident keys (or when you turn FIDO2 off) show differently in Google account settings which makes it all very confusing. The UX is inexcusable, really.
As a side note, turning on Advanced Protection also turns off passkeys.