On iCloud access, I want to figure out what the practical difference is between using YubiKey FIDO2 and not using it. I suspect you're right and that the YubiKey, unlike with my Mac, has no login function. That's what I'm sorting out at the moment, including how it fits with the new function of managing web access to iCloud data. On my iPhone, as you say one possibility is that the YubiKey offers no login function and is only for managing access to my iCloud account. Whether Apple Passkey via its "Touch" keyboard is a better idea is a different question. While it's possible to set up a YubiKey so that only the PIN will unlock my computer, doing away with password access altogether, I've set up my YubiKey so that either the PIN or the password will work. This is handy because I have a fairly lengthy strong password for login to my Mac. When the YubiKey is in a USB port on my Mac on login, I'm asked for a PIN rather than for my password. This function is set up with the YubiKey Manager app or using the Mac Terminal.
On my Mac, the YubiKey has a Personal Identity Verification (PIV) function like a SmartCard.
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