Iím a bit confused about creating a Passkey on a Google account.

I managed to create one on my Yubikey security key and then I turned on the Skip Password when Possible setting logged out then logged back in and I selected Try Another Method. I selected password entered my password and I was successfully logged on.

The Passkey option works when I tapped my yubikey against my iPhone.

But what really worries me, is that Try Another option with password as I was able to login without asking for the yubikey.

Do I also need to turn on 2FA? I thought the whole point of using a Passkey is to avoid using 2FA and just expected to login only with my yubikey without a password EVEN without using the password method when selecting the Try Another option which it seems to have the option to fall back to using a password.

Iím confusedÖ

If Iím not in the correct place to ask this question then please direct me to the right place.