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You can use software u2f (iCloud supports this), you don’t need Yubikeys.

Also, Yubikeys work on phones just fine, via both NFC and USB.

While you can setup passkeys with YubiKey, the most common intended use case is key pairs that are synchable via your Apple/Google/password manager account. So, once you add a passkey, you'll be able to sign in on mobile with it automatically.

you can use yubikeys for both passkey and password+2fa. this way you aren't bypassing anything. and btw, you can get USB-C yubikeys so you can plug it into your phone. if even that's not an option, you can get a USB-C to USB-A adapter.

> but if I want to sign in on mobile.... now what?

Just set up a new passkey on the mobile device.