The good thing about this is they thereby also support FIDO2 hard tokens such as Yubikey. The UI is often confusing but you can always tell it to provision the key to your Yubikey rather than the OS enclave.
That doesn't help if my machine (with only a few USB ports) gets stolen/lost with the token in it. It doesn't help if some of my devices only have USB-C and some only have USB-A. It's absolutely more annoying than letting my password manager fill things in or typing in a 6 digit code from my authenticator app.
Passkeys are password replacements that can't be breached/leaked/etc... I don't think they are necessarily supposed to replace 2-factor, however it's probably more secure than some of the weaker forms of 2-factor auth.
Given that in order to access your password manager's vault often requires 2-factor (or should at least) it's a level of security that I am comfortable with.
I take it a step further and host the password manager vault within my home network. My home network does not expose anything publicly except a WireGuard port, it's completely locked down. I have to VPN in to access the vault.