> Without it anyone with physical access to the device can use it to log in
No, they would need to be able to log onto the device and have the password manager unlocked.
If your passkey is stored in a Yubikey and someone steals it, then how does this feature help you? When the thief plugs the stolen Yubikey into their own Windows account, what is Windows going to do? Ask the thief for the thief's own password? How does that help?
No, they would need to be able to log onto the device and have the password manager unlocked.
If your passkey is stored in a Yubikey and someone steals it, then how does this feature help you? When the thief plugs the stolen Yubikey into their own Windows account, what is Windows going to do? Ask the thief for the thief's own password? How does that help?