I’ve seen the same behavior on iOS and if you select use security key, it messes things up and won’t work. I’ve realized that when the window pops up now, I simply tap my key on the back of my iphone and it works fine. If you actually follow the prompts, it fails, haha.
No such shortcut in Windows, unfortunately. They key simply doesn’t accept or respond to any taps until you first click “Security key” and then click “Next”.
The other interesting aspect about the prompt is that it doesn’t offer an option to use passkeys stored in your browser extension. I haven’t started experimenting with passkeys in Bitwarden yet, but it seems to me that this Windows prompt would prevent you from using Bitwarden (or other 3rd-party) password managers to store your passkeys.
I’m surprised that I haven’t seen more complaints about this issue. Perhaps most users haven’t received the Windows update yet…