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EDIT - after doing some research, I believe this is not a bug, but rather a software limitation

Turns out you cannot use 3rd party passkeys on Android 13 or below - you need Android 14 to use 1Password passkeys or YubiKey passkeys to log in to websites etc.

Reference: https://developers.google.com/identity/passkeys/supported-environments

For Android 13, the only option you have is to use Google Password Manager for managing passkeys on Android.

Also turns out that my Samsung Galaxy S20 is only running Android 13