In the standard version, Connect-SPOService continues to use Basic Authentication for the connection to SharePoint Online. SharePoint administrators can customize it very easily.
In April, Microsoft introduced two new licenses and rolled back a change made in February.
More operating systems and apps support Passkey. I tested Passkey with Windows 11, 1Password and iOS 17 in GitHub.
1Password now supports Passkey with their browser extension. I tried Passkey with a Microsoft account.