Trying to add a passkey in Safari makes no sense:
1. Get prompted by 1Password to put in Passkey. Choose the “use hardware or other passkey"
2. MacOS intercepts this and prompts you to update your settings to let MacOS manage your passkey, or pick "other options"
3. You then are kicked to a screen that prompts you to use "Touch ID" to sign in.
4. You can now insert your security key and tap the button, but you must enter your PIN
5. After entering your PIN you must insert and activate it again