Passkey log in process
When a user has a passkey set up as one of their MFA methods, Microsoft considers this to be the most secure option and will therefore make it the default MFA method for most sign in situations
If a user uses biometrics on their mobile device as the passkey, both the phone and the computer they are signing in to will need to have Bluetooth enabled for a proximity check
The user will see this after entering their user name:
The user can select the iPhone, iPad, or Android device option
Note: it shows "security key" as an option for any user with a passkey enabled, regardless of whether they have a physical token or not.
The computer screen will now display a QR Code that the user can scan with the camera on their phone.

They can scan with their phone, then unlock the phone using the biometric on the mobile device.
Then the two devices will attempt to communicate via Bluetooth, once successful the computer will display this screen

Follow the instructions on the phone to unlock it and then the sign in process will be complete.
Computers without Bluetooth
If the computer does not have Bluetooth, Microsoft may still treat passkey as the most secure option and ask the user to log in using it. It will not display the iPhone, iPad, or Android device option if there is no Bluetooth on the device, it will only display the Insert your security key into the USB port even if the user has no USB devices set up for MFA
The user will need to hit Cancel on this prompt and then choose Sign in another way and the user will be able to select another MFA method

Note: If passkey on a mobile device is the only method the user has, they may be unable to sign into devices that are not Bluetooth enabled. It is strongly recommended that all users have multiple methods set up.
The computer has Bluetooth but it hangs on connecting
If the computer has Bluetooth and presents the iPhone, iPad, or Android device option to the user, but hangs up on the connecting stage after scanning the QR code then the likely cause is the computer is not set up to allow Bluetooth devices to find it.
Go to the Bluetooth settings page in Windows, and scroll down to More Bluetooth Options and check the Allow Bluetooth devices to find this PC option
