I had noticed that, but it seems to imply that a QR code needs to be read.According to this Apple support article, you can use your iPhone or an external security key device instead Touch ID for Passkeys.
Sign in to an account on your Mac with a passkey
On your Mac, sign in to apps and websites with a passkey instead of a password.support.apple.com
Is it worthwhile to purchase the Magic Keyboard with Touch ID for the Mini just to use Passkeys?