When I use a Yubikey for passwordless authentication (FIDO2), it challenges me for a PIN before asking me to touch the device. If I give it too many incorrect PINs, the Yubikey locks up and requires a device reset, which invalidates all previous registrations to use that key for authentication. It doesn't seem like a big deal if someone steals my hardware token.
https://support.yubico.com/hc/en-us/articles/4402836718866-U...