It seems like third-party passkey sign-in and registering is now broken in Vanadium (tested with 1Password). That is, passkeys are correctly recognized and can be selected, but websites I'm trying to sign in to throws an authentication error after the passkey is selected.
Both sign-in and registering with passkeys work fine in Brave (tested with github.com, Brave Nightly). It also does not block the security key prompts when Yubikey is registered as MFA (tested with proton.me, slapp om Brave Nightly).
The feature is still experimental, it seems, so I think it's too early to file a bug report for Vanadium.