What's their end game here?
What is Microsoft gaining from their push to passkeys? They knew this was going to piss off a lot of people, but they went ahead with it anyway. That makes me believe there's something else at play.
My experience with passkeys has been worse that my Bitwarden password auto complete, so needless to stay I'm sticking with my regular passwords on my Bitwarden (I know Bitwarden has Passkeys support. I don't want to use it)