They didn't want to cooperate, and they wanted to make passkeys transferable within you cloud account, while not cooperating with anyone or anything else. The result was that you have no predictable and stable pattern/protocol/interface, or even general description, for how, for instance, a website connects to the passkey or even a hardware key, if you wanted it.
We basically have all the browsers, the operating systems, and the password managers, all fighting over who gets to store and present the passkey. And everybody assumes that they are the only one that exists and actively tries to fight the others is they can.
The basic technology is really good and could work well, but the large asshole tech firms focused on self-interest and walled gardens and made it insufferable.